Simultaneous control of production, repair/replacement and preventive maintenance of deteriorating manufacturing systems

This paper presents a method to find the optimal production, repair/replacement and preventive maintenance policies for a degraded manufacturing system. The system is subject to random machine failures and repairs. The status of the system is deemed to degrade with repair activities. When a failure occurs, the machine is either repaired or replaced, and a replacement action renews the machine, while a repair action brings it to a degraded operational state, with the next repair time increasing as the number of repairs increases as well. A preventive maintenance action is considered in order to improve the reliability of the machine, thereby reducing the amount of disruptions caused by machine failures. The decision variables are the production rate, the preventive maintenance rate and the repair/replacement switching policy upon machine failure. The objective of the study is to find the decision variables that minimize the overall cost, including repair, replacement, preventive maintenance, inventory holding and backlog costs over an infinite planning horizon. The proposed model is based on a semi‐Markov decision process, and the stochastic dynamic programming method is used to obtain the optimality conditions. A numerical example is given to illustrate the proposed model, and a sensitivity analysis is considered in order to confirm the structure of the control policy and to illustrate the usefulness of the proposed approach.