A dynamic inspection and replacement policy for a two-unit production system subject to interdependence

This paper proposes a dynamic inspection and replacement policy for a production system composed of two nonidentical units and an inventory system. Unit 1 deteriorates gradually and it is subject to soft failure. Unit 2 experiences hard failures that occur following a general lifetime distribution. The degradation processes of the two units are stochastically interdependent. Condition monitoring is performed to reveal the deterioration state of...