Accession Number:

AD0605483

Title:

PLANNED REPLACEMENT ON A BUDGET,

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CALIF

Personal Author(s):

Report Date:

1964-08-01

Pagination or Media Count:

8.0

Abstract:

In many situations the failure of equipment while in operation is undesirably costly, or hazardous. For such reasons it may be prudent to institute a policy of planned replacement of units before they fail. However, the costs of such a policy must be militated against the costs of operational failures. In all likelihood, moreover, the over-all system costs will be constrained to fall within a given budgetary allocation. To study the question of frequency of planned replacement under a budgetary constraint, a probabilistic criterian is developed. Attention is directed to those situations in which average system cost is not as important as staying within a fixed budget. Only non-sequential policies are examined although the notions are extensible to the more general case.

Subject Categories:

Distribution Statement:

APPROVED FOR PUBLIC RELEASE