On the comparison of performance-per-cost for coherent and mixed systems

Abstract

The present paper is concerned with reliability economics, considering a certain performance-per-cost criterion for coherent and mixed systems, as introduced in [Dugas, M.R. & Samaniego, F.J. (2007). On optimal system designs in reliability-economics frameworks. Naval Research Logistics 54, 568–582]. We first present a new comparison result for performance-per-cost of systems with independent and identically distributed component lifetimes under certain stochastic orderings. We then consider optimization of the performance-per-cost criterion, first reconsidering and refining results from the above cited paper, and then considering mixtures of given subsets of coherent systems.