A Bayesian Approach to a Renewal Function

Abstract

The historical data on the consumption of spares are usually available in the form that the renewal function of the item could not easily be obtained by the process described by Cox/sup 1/. In this paper, a technique is discussed as to how such data be used for the renewal functions through Bayesian approach. A Beta alpha priori density for the parameter of Poisson demand is assumed that the Predictive demand distribution for such items is obtained. The renewal function in its analytical and asymptotic forms are also obtained.