Consider the age replacement policy discussed in Section 14.3.2. Assume that the failure distribution for the item is exponential with distribution function F t e t ( ) 1 .
(a) Derive the expression for the expected cost rate J(T).
(b) Derive the expression for the optimal replacement age, T*.
(c) What can you conclude?
Consider the data in 14.1.
(a) Find the optimal replacement time T* and corresponding expected cost rate using the block replacement policy discussed in Section 14.3.4.
(b) Compare the optimal cost obtained in (a) with that for the run‐to‐failure policy.
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