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Learning to Balance the Performance and Deterioration of Aging Systems Through Derating
1Smith School of Business, Queen's University, Kingston, ON, Canada.
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A common strategy of extending the lifetime of an aging system is to reduce its workload below the normal operating level, a practice known as derating. While derating can slow the deterioration process, it often comes at the expense of reduced performance. Thus, derating involves a trade-off between performance and deterioration. Central to the optimal derating strategy is the relationship between deterioration and workload, also referred to as the pd-relationship. In practice, however, this relationship is rarely known a priori. We consider the workload optimization when the pd-relationship can be adaptively learned through sequential experimentation, or active learning. We show that the workload not only influences the performance and deterioration but also controls the speed of learning. The decision-maker must therefore account for the complex interplay between performance, deterioration, and information in real time. We formulate this problem as a partially observable Markov decision process and characterize the optimal policy. A key structural insight is that the optimal workload is always less than the myopic load. We further propose an efficient algorithm based on the fast Gauss transform to compute the optimal policies. The model is validated with vibration data and the performance of the optimal policy is compared against several heuristic policies.
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