Optimal replacement strategy for stochastic deteriorating system with random wear limit under periodic inspections

Abstract

In this paper, we examine the preventive maintenance policies for systems/items which are degraded continuously in time and the degree of deterioration that can be observed through periodic inspection. The items will be replaced preventively if the wear process exceeds a limit at periodic inspection or replaced immediately on failure. The limit is assumed to be random in taking individual variation to withstand damages or unmeasurable variables latent to failure into account. Continuous wear process is modeled via a gamma process. We derive an optimal wear limit for preventive replacement so that the long-run total expected cost per unit time is minimized. The proposed method is applied to a problem of block mat inspection for the barrier's seabed protection.