COST-BENEFIT ANALYSIS OF A SINGLE UNIT SYSTEM WITH SCHEDULED MAINTENANCE AND VARIATION IN DEMAND

Abstract

The present paper analyses the reliability and cost-benefit for a single unit system with scheduled maintenance and variation in demand. As Change in demand affects the production of system also, hence sometimes, the system needs to be shut down when the number of produces are in excess as compared to those demanded. Revenue in case of both types of up states i.e., when demand is greater than or equal to production and when demand is less than production have also been taken under consideration while carrying out the cost-benefit analysis. The loss incurred to the system when it is kept shut down due to less demand has also been taken into account. Optimized reliability indices of the system effectiveness are estimated numerically using semi-Markov processes and regenerative point technique. Expression for the expected profit is obtained after obtaining various measures of system effectiveness. We can conclude that cut off points for various rates/probabilities/revenue per unit up time/costs can be obtained which help in deciding the upper/lower acceptable values of rates/costs so that the system is profitable.