In this paper we discuss a general framework for single component replacement models. This framework is based on the regenerative structure of these models and by using results from renewal theory a unified presentation of the discounted and average finite and infinite horizon cost models is given. Finally, some well-known replacement models are discussed, and making use of the previous results an easy derivation of their cost functions is presented.

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ERIM Article Series (EAS)
Mathematical Methods of Operations Research
Erasmus Research Institute of Management

Frenk, H., Dekker, R., & Kleijn, M. (1997). A unified treatment of single component replacement models. Mathematical Methods of Operations Research, 45(3), 437–454. doi:10.1007/BF01194789