This paper studies optimal timing of inspections for units in cold sta
nd-by. The problem is approached in continuous time. The policies deve
loped adapt optimally to information provided by failures of the main
unit and by ageing of both the standby and the main unit. Results incl
ude a general form for the optimal policy, consisting of a recursive r
elation between successive inspection times, and of a renewal-type int
egral equation to determine the value of the objective function for a
given policy. Further results are derived for the case in which the fa
ilure densities describing the process are log-concave. Then the stopp
ing rule is easily characterized. It is also shown that the interval b
etween inspections decreases with time, and that the optimal schedule
is unique. A binary search algorithm for finding the solution is outli
ned.