Abstract
This paper focuses upon the optimal repairing policies of public facilities under demand uncertainty. An optimal impulse control model is formulated to determine the optimal sequence of impulse timing and intensities to minimize the present values of expected costs. The optimal repairing rules can be formulated as a set of adaptive rules by which whether repair should be carried out or not can be judged based upon the routinely observed data on functional deterioration levels of the facilities. A numerical example illustrates how adaptive rules can be calculated in a given demand environment.
