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Comparison of Age, Block, and Failure Replacement Policies

Two widely used preventive replacement policies are the age replacement policy (ARP) and the block replacement policy (BRP). Another replacement policy is the failure replacement policy (FRP) in which no preventive replacements are made at all. In this paper we give a rule for choosing the least costly of the above three policies under conditions specified in the paper. The implementation of this rule is illustrated for two special cases, where the distribution of item life times is uniform, or 2-stage Erlang.