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Joint determination of preventive maintenance and safety stocks in an unreliable production environment

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  • Ki Ling Cheung
  • Warren H. Hausman

Abstract

In this article we formulate an analytical model of preventive maintenance and safety stock strategies in a production environment subject to random machine breakdowns. Traditionally, preventive maintenance and safety stocks have been independently studied as two separate strategies for coping with machine breakdowns. Our intent is to develop a unified framework so that the two are jointly considered. We illustrate the trade‐off between investing in the two options. In addition, we provide optimality conditions under which either one or both strategies should be implemented to minimize the associated cost function. Specifically, cases with deterministic and exponential repair time distributions are analyzed in detail. We include numerical examples to illustrate the determination of optimal strategies for preventive maintenance and safety stocks. © 1997 John Wiley & Sons, Inc.

Suggested Citation

  • Ki Ling Cheung & Warren H. Hausman, 1997. "Joint determination of preventive maintenance and safety stocks in an unreliable production environment," Naval Research Logistics (NRL), John Wiley & Sons, vol. 44(3), pages 257-272, April.
    • Handle: RePEc:wly:navres:v:44:y:1997:i:3:p:257-272
    DOI: 10.1002/(SICI)1520-6750(199704)44:33.0.CO;2-7
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    References listed on IDEAS

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    1. Harry Groenevelt & Liliane Pintelon & Abraham Seidmann, 1992. "Production Lot Sizing with Machine Breakdowns," Management Science, INFORMS, vol. 38(1), pages 104-123, January.
    2. Hau L. Lee & Meir J. Rosenblatt, 1987. "Simultaneous Determination of Production Cycle and Inspection Schedules in a Production System," Management Science, INFORMS, vol. 33(9), pages 1125-1136, September.
    3. William P. Pierskalla & John A. Voelker, 1976. "A survey of maintenance models: The control and surveillance of deteriorating systems," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 23(3), pages 353-388, September.
    4. Evan L. Porteus, 1986. "Optimal Lot Sizing, Process Quality Improvement and Setup Cost Reduction," Operations Research, INFORMS, vol. 34(1), pages 137-144, February.
    5. Harry Groenevelt & Liliane Pintelon & Abraham Seidmann, 1992. "Production Batching with Machine Breakdowns and Safety Stocks," Operations Research, INFORMS, vol. 40(5), pages 959-971, October.
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    Cited by:

    1. Kenne, J.-P. & Gharbi, A. & Beit, M., 2007. "Age-dependent production planning and maintenance strategies in unreliable manufacturing systems with lost sale," European Journal of Operational Research, Elsevier, vol. 178(2), pages 408-420, April.
    2. Dbouk, Wassim & Moussawi-Haidar, Lama & Jaber, Mohamad Y., 2020. "The effect of economic uncertainty on inventory and working capital for manufacturing firms," International Journal of Production Economics, Elsevier, vol. 230(C).
    3. 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.
    4. Gharbi, A. & Kenne, J.-P. & Beit, M., 2007. "Optimal safety stocks and preventive maintenance periods in unreliable manufacturing systems," International Journal of Production Economics, Elsevier, vol. 107(2), pages 422-434, June.
    5. Dhouib, K. & Gharbi, A. & Ben Aziza, M.N., 2012. "Joint optimal production control/preventive maintenance policy for imperfect process manufacturing cell," International Journal of Production Economics, Elsevier, vol. 137(1), pages 126-136.
    6. Gonçalves, João N.C. & Sameiro Carvalho, M. & Cortez, Paulo, 2020. "Operations research models and methods for safety stock determination: A review," Operations Research Perspectives, Elsevier, vol. 7(C).

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