This paper considers a replacement policy for a cumulative damage model. A
unit suffers two kinds of damage which occurs either by shocks or increases
with time. It fails only when the total amount of damage exceeds a failure
level K. For the purpose of preventing failure, the damage is checked when
each shock occurs and a unit is replaced before failure when the total dam
age exceeds a threshold level k. The expected cost rate is obtained, and an
optimal level k* which minimizes it is derived, when shocks occur in a Poi
sson process. Numerical examples are finally given. (C) 2000 Elsevier Scien
ce Ltd. All rights reserved.