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Stochastic Profit Models Under Repair-Limit Replacement Program

In: Recent Advances In Stochastic Operations Research II

Author

Listed:
  • TADASHI DOHI

    (Department of Information Engineering, Graduate School of Engineering, Hiroshima University, 1–4–1 Kagamiyama, Higashi-Hiroshima 739–8527, Japan)

  • NAOTO KAIO

    (Department of Economic Informatics, Faculty of Economic Sciences, Hiroshima Shudo University, 1-1-1 Ozukahigashi, Asaminami-Ku, Hiroshima 731-3195, Japan)

  • SHUNJI OSAKI

    (Department of Information and Telecommunication Engineering, Faculty of Mathematical Sciences and Information Engineering, Nanzan University, 27 Seirei-Cho, Seto 489-0863, Japan)

Abstract

In this paper, we consider two repair-time limit replacement problems under earning rate criteria with and without discounting. First, the optimal repair-time limits, which maximize the long-run average profit rate and the expected total discounted profit over an infinite time horizon, are analytically derived. Next, we develop statistically non-parametric algorithms for estimating the optimal repair-time limits, provided that the complete sample data of repair time are given. The basic idea is to apply the Lorenz statistics and to transform the underlying algebraic optimization problems to the graphical ones.

Suggested Citation

  • Tadashi Dohi & Naoto Kaio & Shunji Osaki, 2009. "Stochastic Profit Models Under Repair-Limit Replacement Program," World Scientific Book Chapters, in: Tadashi Dohi & Shunji Osaki & Katsushige Sawaki (ed.), Recent Advances In Stochastic Operations Research II, chapter 10, pages 139-150, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812791672_0010
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