For leased equipments the lessor incurs penalty costs for failures occurring over the lease period and for not rectifying such failures within a specified time limit. Preventive maintenance action may reduce failures but increase preventive maintena...
For leased equipments the lessor incurs penalty costs for failures occurring over the lease period and for not rectifying such failures within a specified time limit. Preventive maintenance action may reduce failures but increase preventive maintenance costs. This paper determines a periodic preventive maintenance policy for minimizing costs when repair time is proportional to the failure intensity function.