Integrated production and maintenance planning for parallel machine system considering cost of rejection

Production scheduling and maintenance planning have interdependencies but been often considered and optimized independently in practice and in the literature. Furthermore, product quality has direct relationship with maintenance planning. This paper proposes an integrated approach for production scheduling and maintenance planning for parallel machine system considering the effect of cost of rejection. The approach aims to determine optimal production schedule and maintenance plan such that overall operations cost is minimized. A simulation‐based optimization approach is used to solve the problem. A numerical investigation is performed to illustrate the approach. The integrated approach shows between 0.6 and 35.8% improvement in term of overall operations cost over independent approach for various scenarios. The results indicate that simultaneous consideration of production scheduling and maintenance planning results into better system performance.