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The system studied in this article is a 1 out of n : G system with a single server. A unit is repaired when it fails and is also taken off for preventive maintenance (PM) after it has completed a certain amount of time in operation. A single server attends to both repair and PM of units. All service times are exponentially distributed, but the service rate depends on the type of service (repair or PM) and the number of units waiting for service. Under assumptions of linear revenue and costs, a cost‐benefit analysis of this system is performed. A particular case of three units with time to failure 2‐Erlangian and time to PM constant is taken up for analysis. Numerical results are presented for some values of the system parameters.

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