Replacement problems can be classed as either deterministic of stochastic. Deterministic problems are those in which the timing and the outcome of the replacement action are assumed to be known with certainty. Before proceeding with development of replacement models it is important to note that preventive replacement actions, that is, ones taken before equipment reaches a failed state, require two necessary conditions: (1) The total cost of the replacement must be greater after failure than before. (2) The failure rate of the equipment must be increasing. Equipment is subject to failure. On failure, one of two possible actions can be taken : repair or complete replacement of the failed equipment. In this paper, we proposed optimal overhaul, repair, replacement maintenance model with two-state.