In condition-based maintenance, preventive replacement threshold and inspection scheme play important roles in maintenance performance. Major research considers cost as the main objective for measuring maintenance performance; here the average cost per unit time is used as the only objective in a single-unit system. The intention of this study was to investigate that how the average cost per unit time varies through changing replacement threshold and inspection scheme, the aim is to simultaneously determine an optimal replacement threshold and inspection scheme. The heterogeneity of hazard rate over stages of the equipment entails less frequent inspections when the equipment is at a healthy condition and more frequent inspections when the equipment is at a progressively deteriorated condition. Therefore the proposed condition-based inspection in the present work is non-periodic. A method based on dynamic programming is developed in order to implement a condition-based inspection scheme; furthermore the threshold for preventive replacement and the inspection scheme are simultaneously determined and then the optimal average maintenance cost is obtained.

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