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Optimal Scheduling of Fallible Inspections

Author

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  • Giovanni Parmigiani

    (Duke University, Durham, North Carolina)

Abstract

This paper gives the exact optimal solution to the problem of designing inspection schedules with fallible and time-consuming test procedures. The optimality criterion is designed to achieve a balance between the cost of inspections and the cost of undetected failure. The solution is derived in continuous time, with arbitrary failure distribution, and is based on infinite-horizon dynamic programming with time-dependent utilities, and with an additional optimization with respect to initial conditions. Results include uniqueness and monotonicity properties of the optimal solution, as well as computational algorithms.

Suggested Citation

  • Giovanni Parmigiani, 1996. "Optimal Scheduling of Fallible Inspections," Operations Research, INFORMS, vol. 44(2), pages 360-367, April.
    • Handle: RePEc:inm:oropre:v:44:y:1996:i:2:p:360-367
    DOI: 10.1287/opre.44.2.360
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    Cited by:

    1. Alireza Sabouri & Woonghee Tim Huh & Steven M. Shechter, 2017. "Screening Strategies for Patients on the Kidney Transplant Waiting List," Operations Research, INFORMS, vol. 65(5), pages 1131-1146, October.
    2. Ahmadi, Reza & Wu, Shaomin, 2017. "A novel data-driven approach to optimizing replacement policy," Reliability Engineering and System Safety, Elsevier, vol. 167(C), pages 506-516.
    3. Michael Jong Kim & Viliam Makis, 2013. "Joint Optimization of Sampling and Control of Partially Observable Failing Systems," Operations Research, INFORMS, vol. 61(3), pages 777-790, June.
    4. Leung, Francis Kit-nam, 2001. "Inspection schedules when the lifetime distribution of a single-unit system is completely unknown," European Journal of Operational Research, Elsevier, vol. 132(1), pages 106-115, July.

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