In this paper we investigate the conditions under which the marginal cost approach of Refs. 1-3 holds. As observed in Ref. 4, the validity of the marginal cost approach gives rise to a useful framework of single-component maintenance optimization models, which covers almost all models used in practice. For the class of unimodal finite-valued marginal cost functions, we show that these optimization models are easy to solve.

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Journal of Optimization Theory and Applications
Tinbergen Institute

Frenk, J.B.G, Dekker, R, & Kleijn, M.J. (1997). On the marginal cost approach in maintenance. Journal of Optimization Theory and Applications, 94(3), 771–781. doi:10.1023/A:1022621621633