In this paper, a deteriorating simple repairable system with two-types of failure states, is studied. Assume that the system after repair cannot be as good as new, and the deterioration is stochastic. Under these assumptions, a new general monotone process model for the degenerative system is introduced which is a generalization of the ¥á-series process model. We use a replacement policy N based on the failure number of the system, then our aim is to determine an optimal replacement policy N. such that the average cost rate is minimized. We derive the optimal replacement policy analytically or numerically. Finally, we provide a numerical example, and carry through some discussions and sensitivity analysis of the model in this paper.
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