IDEAS home Printed from https://ideas.repec.org/a/eee/reensy/v213y2021ics0951832021002957.html
   My bibliography  Save this article

Resource definition and allocation for a multi-asset portfolio with heterogeneous degradation

Author

Listed:
  • Dias, Luis
  • Leitão, Armando
  • Guimarães, Luis

Abstract

When making long-term plans for their asset portfolios, decision-makers have to define a priori a maintenance budget that is to be shared among the several assets and managed throughout the planning period. During the planning period, the a priori budget is then allocated by managers to different operation and maintenance interventions ensuring the overall performance of the system. Because asset degradation is stochastic, a considerable amount of uncertainty is associated with this problem. Hence, to define a robust budget, it is essential to account for several degradation scenarios pertaining to the individual condition of each asset.

Suggested Citation

  • Dias, Luis & Leitão, Armando & Guimarães, Luis, 2021. "Resource definition and allocation for a multi-asset portfolio with heterogeneous degradation," Reliability Engineering and System Safety, Elsevier, vol. 213(C).
    • Handle: RePEc:eee:reensy:v:213:y:2021:i:c:s0951832021002957
    DOI: 10.1016/j.ress.2021.107768
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0951832021002957
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ress.2021.107768?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Petchrompo, Sanyapong & Parlikad, Ajith Kumar, 2019. "A review of asset management literature on multi-asset systems," Reliability Engineering and System Safety, Elsevier, vol. 181(C), pages 181-201.
    2. Nguyen, Khanh T. P. & Do, Phuc & Huynh, Khac Tuan & Bérenguer, Christophe & Grall, Antoine, 2019. "Joint optimization of monitoring quality and replacement decisions in condition-based maintenance," Reliability Engineering and System Safety, Elsevier, vol. 189(C), pages 177-195.
    3. Li, Heping & Deloux, Estelle & Dieulle, Laurence, 2016. "A condition-based maintenance policy for multi-component systems with Lévy copulas dependence," Reliability Engineering and System Safety, Elsevier, vol. 149(C), pages 44-55.
    4. Alaswad, Suzan & Xiang, Yisha, 2017. "A review on condition-based maintenance optimization models for stochastically deteriorating system," Reliability Engineering and System Safety, Elsevier, vol. 157(C), pages 54-63.
    5. Liu, Bin & Xu, Zhengguo & Xie, Min & Kuo, Way, 2014. "A value-based preventive maintenance policy for multi-component system with continuously degrading components," Reliability Engineering and System Safety, Elsevier, vol. 132(C), pages 83-89.
    6. Chen, Nan & Ye, Zhi-Sheng & Xiang, Yisha & Zhang, Linmiao, 2015. "Condition-based maintenance using the inverse Gaussian degradation model," European Journal of Operational Research, Elsevier, vol. 243(1), pages 190-199.
    7. Shi, Yue & Zhu, Weihang & Xiang, Yisha & Feng, Qianmei, 2020. "Condition-based maintenance optimization for multi-component systems subject to a system reliability requirement," Reliability Engineering and System Safety, Elsevier, vol. 202(C).
    8. Irawan, Chandra Ade & Ouelhadj, Djamila & Jones, Dylan & Stålhane, Magnus & Sperstad, Iver Bakken, 2017. "Optimisation of maintenance routing and scheduling for offshore wind farms," European Journal of Operational Research, Elsevier, vol. 256(1), pages 76-89.
    9. Mishra, Sabyasachee & Sharma, Sushant & Khasnabis, Snehamay & Mathew, Tom V., 2013. "Preserving an aging transit fleet: An optimal resource allocation perspective based on service life and constrained budget," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 111-123.
    10. Olde Keizer, Minou C.A. & Flapper, Simme Douwe P. & Teunter, Ruud H., 2017. "Condition-based maintenance policies for systems with multiple dependent components: A review," European Journal of Operational Research, Elsevier, vol. 261(2), pages 405-420.
    11. Ariannik, Mohamadreza & Razi-Kazemi, Ali A. & Lehtonen, Matti, 2020. "An approach on lifetime estimation of distribution transformers based on degree of polymerization," Reliability Engineering and System Safety, Elsevier, vol. 198(C).
    12. Mathew, Tom V. & Khasnabis, Snehamay & Mishra, Sabyasachee, 2010. "Optimal resource allocation among transit agencies for fleet management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(6), pages 418-432, July.
    13. Wang, Hongzhou, 2002. "A survey of maintenance policies of deteriorating systems," European Journal of Operational Research, Elsevier, vol. 139(3), pages 469-489, June.
    14. Wu, Bei & Cui, Lirong & Fang, Chen, 2019. "Reliability analysis of semi-Markov systems with restriction on transition times," Reliability Engineering and System Safety, Elsevier, vol. 190(C), pages 1-1.
    15. Shahraki, Ameneh Forouzandeh & Yadav, Om Prakash & Vogiatzis, Chrysafis, 2020. "Selective maintenance optimization for multi-state systems considering stochastically dependent components and stochastic imperfect maintenance actions," Reliability Engineering and System Safety, Elsevier, vol. 196(C).
    16. Sophie Mercier & Hai Ha Pham, 2014. "A condition‐based imperfect replacement policy for a periodically inspected system with two dependent wear indicators," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 30(6), pages 766-782, November.
    17. Petchrompo, Sanyapong & Li, Hao & Erguido, Asier & Riches, Chris & Parlikad, Ajith Kumar, 2020. "A value-based approach to optimizing long-term maintenance plans for a multi-asset k-out-of-N system," Reliability Engineering and System Safety, Elsevier, vol. 200(C).
    18. Rockafellar, R. Tyrrell & Uryasev, Stanislav, 2002. "Conditional value-at-risk for general loss distributions," Journal of Banking & Finance, Elsevier, vol. 26(7), pages 1443-1471, July.
    19. Pekka Mild & Ahti Salo, 2009. "Combining a Multiattribute Value Function with an Optimization Model: An Application to Dynamic Resource Allocation for Infrastructure Maintenance," Decision Analysis, INFORMS, vol. 6(3), pages 139-152, September.
    20. Ohlmann, Jeffrey W. & Bean, James C., 2009. "Resource-constrained management of heterogeneous assets with stochastic deterioration," European Journal of Operational Research, Elsevier, vol. 199(1), pages 198-208, November.
    21. Guo, Chiming & Wang, Wenbin & Guo, Bo & Si, Xiaosheng, 2013. "A maintenance optimization model for mission-oriented systems based on Wiener degradation," Reliability Engineering and System Safety, Elsevier, vol. 111(C), pages 183-194.
    22. Phan, Dzung T. & Zhu, Yada, 2015. "Multi-stage optimization for periodic inspection planning of geo-distributed infrastructure systems," European Journal of Operational Research, Elsevier, vol. 245(3), pages 797-804.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Wei & Shao, Changzheng & Hu, Bo & Li, Weizhan & Sun, Yue & Xie, Kaigui & Zio, Enrico & Li, Wenyuan, 2023. "A restoration-clustering-decomposition learning framework for aging-related failure rate estimation of distribution transformers," Reliability Engineering and System Safety, Elsevier, vol. 232(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petchrompo, Sanyapong & Parlikad, Ajith Kumar, 2019. "A review of asset management literature on multi-asset systems," Reliability Engineering and System Safety, Elsevier, vol. 181(C), pages 181-201.
    2. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    3. Zhang, Nan & Cai, Kaiquan & Zhang, Jun & Wang, Tian, 2022. "A condition-based maintenance policy considering failure dependence and imperfect inspection for a two-component system," Reliability Engineering and System Safety, Elsevier, vol. 217(C).
    4. Wang, Yukun & Li, Xiaopeng & Chen, Junyan & Liu, Yiliu, 2022. "A condition-based maintenance policy for multi-component systems subject to stochastic and economic dependencies," Reliability Engineering and System Safety, Elsevier, vol. 219(C).
    5. Deep, Akash & Zhou, Shiyu & Veeramani, Dharmaraj & Chen, Yong, 2023. "Partially observable Markov decision process-based optimal maintenance planning with time-dependent observations," European Journal of Operational Research, Elsevier, vol. 311(2), pages 533-544.
    6. Zhang, Nailong & Si, Wujun, 2020. "Deep reinforcement learning for condition-based maintenance planning of multi-component systems under dependent competing risks," Reliability Engineering and System Safety, Elsevier, vol. 203(C).
    7. Shahraki, Ameneh Forouzandeh & Yadav, Om Prakash & Vogiatzis, Chrysafis, 2020. "Selective maintenance optimization for multi-state systems considering stochastically dependent components and stochastic imperfect maintenance actions," Reliability Engineering and System Safety, Elsevier, vol. 196(C).
    8. Andersen, Jesper Fink & Andersen, Anders Reenberg & Kulahci, Murat & Nielsen, Bo Friis, 2022. "A numerical study of Markov decision process algorithms for multi-component replacement problems," European Journal of Operational Research, Elsevier, vol. 299(3), pages 898-909.
    9. Azizi, Fariba & Salari, Nooshin, 2023. "A novel condition-based maintenance framework for parallel manufacturing systems based on bivariate birth/birth–death processes," Reliability Engineering and System Safety, Elsevier, vol. 229(C).
    10. KarabaÄŸ, Oktay & Eruguz, Ayse Sena & Basten, Rob, 2020. "Integrated optimization of maintenance interventions and spare part selection for a partially observable multi-component system," Reliability Engineering and System Safety, Elsevier, vol. 200(C).
    11. Dilaver, Halit Metehan & Akçay, Alp & van Houtum, Geert-Jan, 2023. "Integrated planning of asset-use and dry-docking for a fleet of maritime assets," International Journal of Production Economics, Elsevier, vol. 256(C).
    12. Alaswad, Suzan & Xiang, Yisha, 2017. "A review on condition-based maintenance optimization models for stochastically deteriorating system," Reliability Engineering and System Safety, Elsevier, vol. 157(C), pages 54-63.
    13. Oakley, Jordan L. & Wilson, Kevin J. & Philipson, Pete, 2022. "A condition-based maintenance policy for continuously monitored multi-component systems with economic and stochastic dependence," Reliability Engineering and System Safety, Elsevier, vol. 222(C).
    14. Barlow, E. & Bedford, T. & Revie, M. & Tan, J. & Walls, L., 2021. "A performance-centred approach to optimising maintenance of complex systems," European Journal of Operational Research, Elsevier, vol. 292(2), pages 579-595.
    15. Olde Keizer, Minou C.A. & Flapper, Simme Douwe P. & Teunter, Ruud H., 2017. "Condition-based maintenance policies for systems with multiple dependent components: A review," European Journal of Operational Research, Elsevier, vol. 261(2), pages 405-420.
    16. Huynh, K.T. & Vu, H.C. & Nguyen, T.D. & Ho, A.C., 2022. "A predictive maintenance model for k-out-of-n:F continuously deteriorating systems subject to stochastic and economic dependencies," Reliability Engineering and System Safety, Elsevier, vol. 226(C).
    17. Giorgio, Massimiliano & Pulcini, Gianpaolo, 2024. "The effect of model misspecification of the bounded transformed gamma process on maintenance optimization," Reliability Engineering and System Safety, Elsevier, vol. 241(C).
    18. Liu, Bin & Pandey, Mahesh D. & Wang, Xiaolin & Zhao, Xiujie, 2021. "A finite-horizon condition-based maintenance policy for a two-unit system with dependent degradation processes," European Journal of Operational Research, Elsevier, vol. 295(2), pages 705-717.
    19. Liu, Xingchen & Sun, Qiuzhuang & Ye, Zhi-Sheng & Yildirim, Murat, 2021. "Optimal multi-type inspection policy for systems with imperfect online monitoring," Reliability Engineering and System Safety, Elsevier, vol. 207(C).
    20. Zhang, Zhengxin & Si, Xiaosheng & Hu, Changhua & Lei, Yaguo, 2018. "Degradation data analysis and remaining useful life estimation: A review on Wiener-process-based methods," European Journal of Operational Research, Elsevier, vol. 271(3), pages 775-796.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reensy:v:213:y:2021:i:c:s0951832021002957. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/reliability-engineering-and-system-safety .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.