Geometric processes and replacement problem (Q1113542)

A sequence \(\{X_ n,n\geq 1\}\) of independent nonnegative random variables is said to form a geometric process if \(X_ n\) has the same distribution as \(c^{n-1}X_ 1\), where \(c>0\). It is a decreasing or an increasing process according to \(c\leq 1\) or \(c\geq 1\) \((c=1\) is nothing but a renewal process). Consider a replacement model where survival times between successive repairs form a decreasing geometric process, while successive repair times form an independent increasing geometric process. For this model expressions for average long-run cost per unit time are obtained for two replacement policies - one based on the age of the system and the other based on the number of repairs.