Abstract
We consider an optimal stopping problem for the operation of system
that deteriorates with age and fails stochastically until the fixed time
limit in advance. When the system fails unexpectedly, we choose one of
two actions, repair or stop. The optimal stopping time which minimizes
the total expected cost is derived by means of a simple mathematical
model and dynamic programming technique. Some numerical examples
are presented to illustrate our results in detail when the failure and the
repair distributions are given specifically.
