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The impact of process deterioration on production and maintenance policies

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  • Kazaz, Burak
  • Sloan, Thomas W.

Abstract

This paper examines a single-stage production system that deteriorates with production actions, and improves with maintenance. The condition of the process can be in any of several discrete states, and transitions from state to state follow a semi-Markov process. The firm can produce multiple products, which differ by profit earned, expected processing time, and impact on equipment deterioration. The firm can also perform different maintenance actions, which differ by cost incurred, expected down time, and impact on the process condition. The firm needs to determine the optimal production and maintenance choices in each state in a way that maximizes the long-run expected average reward per unit time.

Suggested Citation

  • Kazaz, Burak & Sloan, Thomas W., 2013. "The impact of process deterioration on production and maintenance policies," European Journal of Operational Research, Elsevier, vol. 227(1), pages 88-100.
    • Handle: RePEc:eee:ejores:v:227:y:2013:i:1:p:88-100
    DOI: 10.1016/j.ejor.2012.11.052
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    2. Talay, Işılay & Özdemir-Akyıldırım, Öznur, 2019. "Optimal procurement and production planning for multi-product multi-stage production under yield uncertainty," European Journal of Operational Research, Elsevier, vol. 275(2), pages 536-551.
    3. A. S. Xanthopoulos & S. Vlastos & D. E. Koulouriotis, 2022. "Coordinating production, inspection and maintenance decisions in a stochastic manufacturing system with deterioration failures," Operational Research, Springer, vol. 22(5), pages 5707-5732, November.
    4. Peng, Hao & van Houtum, Geert-Jan, 2016. "Joint optimization of condition-based maintenance and production lot-sizing," European Journal of Operational Research, Elsevier, vol. 253(1), pages 94-107.
    5. Peymankar, Mahboobe & Dehghanian, Farzad & Ghiami, Yousef & Abolbashari, Mohammad Hassan, 2018. "The effects of contractual agreements on the economic production quantity model with machine breakdown," International Journal of Production Economics, Elsevier, vol. 201(C), pages 203-215.
    6. Michiel A. J. uit het Broek & Ruud H. Teunter & Bram de Jonge & Jasper Veldman & Nicky D. Van Foreest, 2020. "Condition-Based Production Planning: Adjusting Production Rates to Balance Output and Failure Risk," Manufacturing & Service Operations Management, INFORMS, vol. 22(4), pages 792-811, July.
    7. Annie Francie, Kouedeu & Jean-Pierre, Kenne & Pierre, Dejax & Victor, Songmene & Vladimir, Polotski, 2014. "Stochastic optimal control of manufacturing systems under production-dependent failure rates," International Journal of Production Economics, Elsevier, vol. 150(C), pages 174-187.
    8. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    9. Gössinger, Ralf & Helmke, Hanna & Kaluzny, Michael, 2017. "Condition-based release of maintenance jobs in a decentralised production-maintenance system – An analysis of alternative stochastic approaches," International Journal of Production Economics, Elsevier, vol. 193(C), pages 528-537.
    10. Ekin, Tahir, 2018. "Integrated maintenance and production planning with endogenous uncertain yield," Reliability Engineering and System Safety, Elsevier, vol. 179(C), pages 52-61.

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