AN OPTIMAL ORDERING POLICY OF A SYSTEM SUBJECT TO SHOCKS

We consider an optimal ordering policy of a system subject to shocks w ith number-dependent minimal repair and random lean time. By introduci ng costs due to ordering, repairs and shortage, we derive the expected cost per unit rime in the long I un as a criterion of optimality and seek the optimum ordering policy by minimizing that cost. We show that , under certain conditions, there exists a finite and unique optimum p olicy. Various special cases are discussed. A numerical example is giv en to illustrate the method.