In this paper we consider parallel and series systems, the components of which can be ‘improved'. The ‘improvement' consists of supplying the components with cold or hot standby spares or by allotting to them fixed budgets for minimal repairs. A fixed total resource of spares or minimal repairs is available. We find the optimal allocation of the resource items in several commonly encountered settings.
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Shaked et al. (1992) studied this question.
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