The optimal repairing rules under demand risk

This paper focuses upon the optimal repairing rules of public systems under demand uncertainty. An optimal impulse control model is formulated to determine the optimal sequence of impulse timing: and the recovery policy to minimize the present values of expected life cycle costs. The optimal repairing rules can be formulated as a set of adaptive state-dependent rules. The repairing rules can be applied based upon updated observations about service levels of systems. A numerical example illustrates how adaptive rules can be calculated in a given demand environment.