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Optimal joint preventive maintenance and production policies

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  • Xiaodong Yao
  • Xiaolan Xie
  • Michael C. Fu
  • Steven I. Marcus

Abstract

We study joint preventive maintenance (PM) and production policies for an unreliable production‐inventory system in which maintenance/repair times are non‐negligible and stochastic. A joint policy decides (a) whether or not to perform PM and (b) if PM is not performed, then how much to produce. We consider a discrete‐time system, formulating the problem as a Markov decision process (MDP) model. The focus of the work is on the structural properties of optimal joint policies, given the system state comprised of the system's age and the inventory level. Although our analysis indicates that the structure of optimal joint policies is very complex in general, we are able to characterize several properties regarding PM and production, including optimal production/maintenance actions under backlogging and high inventory levels, and conditions under which the PM portion of the joint policy has a control‐limit structure. In further special cases, such as when PM set‐up costs are negligible compared to PM times, we are able to establish some additional structural properties. © 2005 Wiley Periodicals, Inc. Naval Research Logistics, 2005.

Suggested Citation

  • Xiaodong Yao & Xiaolan Xie & Michael C. Fu & Steven I. Marcus, 2005. "Optimal joint preventive maintenance and production policies," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(7), pages 668-681, October.
    • Handle: RePEc:wly:navres:v:52:y:2005:i:7:p:668-681
    DOI: 10.1002/nav.20107
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Nan & Cai, Kaiquan & Deng, Yingjun & Zhang, Jun, 2024. "Joint optimization of condition-based maintenance and condition-based production of a single equipment considering random yield and maintenance delay," Reliability Engineering and System Safety, Elsevier, vol. 241(C).
    2. Richard Arnold & Stefanka Chukova & Yu Hayakawa & Sarah Marshall, 2019. "Warranty cost analysis with an alternating geometric process," Journal of Risk and Reliability, , vol. 233(4), pages 698-715, August.
    3. David L. Kaufman & Mark E. Lewis, 2007. "Machine maintenance with workload considerations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(7), pages 750-766, October.
    4. Nooshin Salari & Viliam Makis, 2020. "Application of Markov renewal theory and semi‐Markov decision processes in maintenance modeling and optimization of multi‐unit systems," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(7), pages 548-558, October.

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