| Article ID: | iaor20022161 |
| Country: | Netherlands |
| Volume: | 74 |
| Issue: | 1/3 |
| Start Page Number: | 147 |
| End Page Number: | 155 |
| Publication Date: | Jan 2001 |
| Journal: | International Journal of Production Economics |
| Authors: | Osaki Shunji, Dohi Tadashi, Okamura Hiroyuki |
| Keywords: | economic order, preventative maintenance |
This paper revisits the economic manufacturing quantity model by Cheung and Hausman from the theoretical point of view, and develops a new stochastic model under somewhat different restrictive assumptions. The optimal policies, the order quantity and safety stock, are derived, respectively, so as to minimize the expected cost per unit time in the steady-state.