Optimal Inspection Policies to Minimize Expected Cost Rates

Abstract

In this paper, we propose a computing algorithm to obtain optimal checking times which minimize the expected cost rate of sequential inspection models. This algorithm is applied to two modified inspection models with finite intervals such that the unit is checked at times [Formula: see text] ([Formula: see text]) for given [Formula: see text] and given [Formula: see text]. The modified algorithms are proposed and optimal checking times to minimize the expected cost rates are obtained. Numerical examples of each model are given to show how to use the algorithm. This method would be applied to other sequential inspection models by its suitable modifications.