Letter to the Editor—Nonoptimality of Planned Replacement in Intervals of Decreasing Failure Rate

Published Online:https://doi.org/10.1287/opre.15.2.358

The planned replacement problem assumes a known failure distribution F(t) and that replacement occurs at the earlier of a planned replacement interval (at cost c1) and the time of failure (at cost c2). We show that it cannot be optimal to select a planned replacement interval at a point for which the failure rate f(t)/[1 − F(t)] is decreasing.

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