Coordinated maintenance in a multi-component system with compound Poisson deterioration

This paper proposes a coordinated maintenance model in a multi-component system with compound Poisson deterioration. The main contribution is a policy-iteration approach for Semi-Markov processes that optimizes the threshold at which the component is eligible for preventive maintenance if another component requires corrective maintenance. The methodology is novel as we develop explicit expressions for the policy evaluation and prove these expressions to satisfy the set of linear equations which characterize traditional policy evaluation. By doing so, long-run average cost savings are achieved, since setup costs can be shared.