A condition-based maintenance policy for degrading systems with age- and state-dependent operating cost

Bin Liu, Shaomin Wu, Min Xie, Way Kuo

Research output: Contribution to journalArticlepeer-review

105 Citations (Scopus)
65 Downloads (Pure)


Most of the maintenance policies in existing publications assume that no cost is incurred as long as the system can undertake missions while little consideration has been devoted to the operating cost during system operation. However, in practice, the operating cost increases while the system ages and degrades even if a system is in a functioning state. This paper proposes a maintenance policy for a degrading system with age- and state-dependent operating cost, which increases with system age and degradation levels. Under such a setting, a replacement model is first developed to investigate the optimal preventive replacement policy. The replacement model is then extended to a repair-replacement model, in which imperfect repair is assumed to restore the system to the operating condition. Particularly, the repair model with controllable and uncontrollable repair levels is considered separately. The paper proves that the optimal maintenance policy is actually a monotone control limit policy, where the optimal control limits decrease monotonically with system age. Finally, a numerical example along with sensitivity analysis is presented to illustrate the optimal maintenance policy. The proposed model implies a more conservative maintenance policy, compared with the traditional model without the age- and state-dependent operating cost.
Original languageEnglish
Pages (from-to)879-887
Number of pages9
JournalEuropean Journal of Operational Research
Issue number3
Early online date11 May 2017
Publication statusPublished - 16 Dec 2017


  • (T) maintenance
  • condition-based maintenance
  • age- and state-dependent operating cost
  • side effect of degradation
  • control limit policy


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