Delayed Age Replacement Policy with Uncertain Lifetime

Abstract

This paper considers the delayed age replacement policy, in which the lifetimes of all units are assumed to be uncertain variables, and the lifetime of the first unit has an uncertainty distribution which is different from the others. A delayed age replacement model which is concerned with finding the optimal replacement time to minimize the expected cost is developed. In the policy, the optimal replacement time is irrelevant to the uncertain distribution of lifetime of the first unit over the infinite time span.