A production system is subject to random failure. The system continuously accumulates damage through a "wear" process and the failure time depends on the accumulated damage in the system. Upon failure the system is replaced by a new identical one and the replacement cycles are repeated. A cost...

The purpose of this article is to consider a two firms excess-loss reinsurance problem. The first firm is defined as the direct underwriter while the second firm is the reinsurer. As in the classical model of collective risk theory it is assumed that premium payments are received...