IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v257y2017i1p209-222.html
   My bibliography  Save this article

Joint condition-based maintenance and inventory optimization for systems with multiple components

Author

Listed:
  • Olde Keizer, Minou C.A.
  • Teunter, Ruud H.
  • Veldman, Jasper

Abstract

Efficient (condition-based) maintenance planning and inventory control of spares for critical components jointly determine the effectiveness of a maintenance strategy and, thereby, balance system uptime and maintenance costs. Duplicating an optimal policy for a single-component system to a multi-component system is not necessarily optimal, while a separate or sequential optimization of the maintenance and inventory decisions is also not guaranteed to yield the lowest costs. We therefore consider the joint optimization of condition-based maintenance and spares planning for multi-component systems. We formulate our model as a Markov Decision Process, and minimize the long-run average cost per time unit. A key insight from our numerical results is that the (s, S) inventory policy, popular in theory as well as practice, can be far from optimal for systems consisting of few components. Significant savings can be obtained by basing both the maintenance decisions and the timing of ordering spare components on the system’s condition.

Suggested Citation

  • Olde Keizer, Minou C.A. & Teunter, Ruud H. & Veldman, Jasper, 2017. "Joint condition-based maintenance and inventory optimization for systems with multiple components," European Journal of Operational Research, Elsevier, vol. 257(1), pages 209-222.
    • Handle: RePEc:eee:ejores:v:257:y:2017:i:1:p:209-222
    DOI: 10.1016/j.ejor.2016.07.047
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221716306026
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2016.07.047?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mario Guajardo & Mikael Rönnqvist & Ann Mari Halvorsen & Svein Inge Kallevik, 2015. "Inventory management of spare parts in an energy company," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 66(2), pages 331-341, February.
    2. van Jaarsveld, Willem & Dollevoet, Twan & Dekker, Rommert, 2015. "Improving spare parts inventory control at a repair shop," Omega, Elsevier, vol. 57(PB), pages 217-229.
    3. Li, Heping & Deloux, Estelle & Dieulle, Laurence, 2016. "A condition-based maintenance policy for multi-component systems with Lévy copulas dependence," Reliability Engineering and System Safety, Elsevier, vol. 149(C), pages 44-55.
    4. Donald L. Iglehart, 1963. "Optimality of (s, S) Policies in the Infinite Horizon Dynamic Inventory Problem," Management Science, INFORMS, vol. 9(2), pages 259-267, January.
    5. Wang, Hongzhou, 2002. "A survey of maintenance policies of deteriorating systems," European Journal of Operational Research, Elsevier, vol. 139(3), pages 469-489, June.
    6. Rommert Dekker & Ralph Wildeman & Frank Duyn Schouten, 1997. "A review of multi-component maintenance models with economic dependence," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 45(3), pages 411-435, October.
    7. de Jonge, Bram & Klingenberg, Warse & Teunter, Ruud & Tinga, Tiedo, 2015. "Optimum maintenance strategy under uncertainty in the lifetime distribution," Reliability Engineering and System Safety, Elsevier, vol. 133(C), pages 59-67.
    8. van Noortwijk, J.M., 2009. "A survey of the application of gamma processes in maintenance," Reliability Engineering and System Safety, Elsevier, vol. 94(1), pages 2-21.
    9. Borrero, J.S. & Akhavan-Tabatabaei, R., 2013. "Time and inventory dependent optimal maintenance policies for single machine workstations: An MDP approach," European Journal of Operational Research, Elsevier, vol. 228(3), pages 545-555.
    10. Alsyouf, Imad, 2007. "The role of maintenance in improving companies' productivity and profitability," International Journal of Production Economics, Elsevier, vol. 105(1), pages 70-78, January.
    11. Van Horenbeek, Adriaan & Buré, Jasmine & Cattrysse, Dirk & Pintelon, Liliane & Vansteenwegen, Pieter, 2013. "Joint maintenance and inventory optimization systems: A review," International Journal of Production Economics, Elsevier, vol. 143(2), pages 499-508.
    12. Kennedy, W. J. & Wayne Patterson, J. & Fredendall, Lawrence D., 2002. "An overview of recent literature on spare parts inventories," International Journal of Production Economics, Elsevier, vol. 76(2), pages 201-215, March.
    13. Wang, Ling & Chu, Jian & Mao, Weijie, 2009. "A condition-based replacement and spare provisioning policy for deteriorating systems with uncertain deterioration to failure," European Journal of Operational Research, Elsevier, vol. 194(1), pages 184-205, April.
    14. Hong, H.P. & Zhou, W. & Zhang, S. & Ye, W., 2014. "Optimal condition-based maintenance decisions for systems with dependent stochastic degradation of components," Reliability Engineering and System Safety, Elsevier, vol. 121(C), pages 276-288.
    15. Antony Svoronos & Paul Zipkin, 1991. "Evaluation of One-for-One Replenishment Policies for Multiechelon Inventory Systems," Management Science, INFORMS, vol. 37(1), pages 68-83, January.
    16. Kranenburg, A.A. & van Houtum, G.J., 2009. "A new partial pooling structure for spare parts networks," European Journal of Operational Research, Elsevier, vol. 199(3), pages 908-921, December.
    17. Syntetos, A.A. & Teunter, R.H. & Babai, M.Z. & Transchel, S., 2016. "On the benefits of delayed ordering," European Journal of Operational Research, Elsevier, vol. 248(3), pages 963-970.
    18. Alaa H. Elwany & Nagi Z. Gebraeel & Lisa M. Maillart, 2011. "Structured Replacement Policies for Components with Complex Degradation Processes and Dedicated Sensors," Operations Research, INFORMS, vol. 59(3), pages 684-695, June.
    19. Bouvard, K. & Artus, S. & Bérenguer, C. & Cocquempot, V., 2011. "Condition-based dynamic maintenance operations planning & grouping. Application to commercial heavy vehicles," Reliability Engineering and System Safety, Elsevier, vol. 96(6), pages 601-610.
    20. Karsten, Frank & Basten, Rob J.I., 2014. "Pooling of spare parts between multiple users: How to share the benefits?," European Journal of Operational Research, Elsevier, vol. 233(1), pages 94-104.
    21. Cho, Danny I. & Parlar, Mahmut, 1991. "A survey of maintenance models for multi-unit systems," European Journal of Operational Research, Elsevier, vol. 51(1), pages 1-23, March.
    22. R H Teunter & L Duncan, 2009. "Forecasting intermittent demand: a comparative study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(3), pages 321-329, March.
    23. Rasmekomen, Nipat & Parlikad, Ajith Kumar, 2016. "Condition-based maintenance of multi-component systems with degradation state-rate interactions," Reliability Engineering and System Safety, Elsevier, vol. 148(C), pages 1-10.
    24. Zohrul Kabir, A. B. M. & Al-Olayan, Ahmed S., 1996. "A stocking policy for spare part provisioning under age based preventive replacement," European Journal of Operational Research, Elsevier, vol. 90(1), pages 171-181, April.
    25. Olde Keizer, Minou C.A. & Teunter, Ruud H. & Veldman, Jasper, 2016. "Clustering condition-based maintenance for systems with redundancy and economic dependencies," European Journal of Operational Research, Elsevier, vol. 251(2), pages 531-540.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    2. Olde Keizer, Minou C.A. & Flapper, Simme Douwe P. & Teunter, Ruud H., 2017. "Condition-based maintenance policies for systems with multiple dependent components: A review," European Journal of Operational Research, Elsevier, vol. 261(2), pages 405-420.
    3. Alaswad, Suzan & Xiang, Yisha, 2017. "A review on condition-based maintenance optimization models for stochastically deteriorating system," Reliability Engineering and System Safety, Elsevier, vol. 157(C), pages 54-63.
    4. Liu, Bin & Pandey, Mahesh D. & Wang, Xiaolin & Zhao, Xiujie, 2021. "A finite-horizon condition-based maintenance policy for a two-unit system with dependent degradation processes," European Journal of Operational Research, Elsevier, vol. 295(2), pages 705-717.
    5. Liu, Xinbao & Yang, Tianji & Pei, Jun & Liao, Haitao & Pohl, Edward A., 2019. "Replacement and inventory control for a multi-customer product service system with decreasing replacement costs," European Journal of Operational Research, Elsevier, vol. 273(2), pages 561-574.
    6. Zhang, Xiaohong & Zeng, Jianchao, 2017. "Joint optimization of condition-based opportunistic maintenance and spare parts provisioning policy in multiunit systems," European Journal of Operational Research, Elsevier, vol. 262(2), pages 479-498.
    7. Olde Keizer, Minou C.A. & Teunter, Ruud H. & Veldman, Jasper, 2016. "Clustering condition-based maintenance for systems with redundancy and economic dependencies," European Journal of Operational Research, Elsevier, vol. 251(2), pages 531-540.
    8. Nguyen, Kim-Anh & Do, Phuc & Grall, Antoine, 2017. "Joint predictive maintenance and inventory strategy for multi-component systems using Birnbaum’s structural importance," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 249-261.
    9. KarabaÄŸ, Oktay & Eruguz, Ayse Sena & Basten, Rob, 2020. "Integrated optimization of maintenance interventions and spare part selection for a partially observable multi-component system," Reliability Engineering and System Safety, Elsevier, vol. 200(C).
    10. de Jonge, Bram & Teunter, Ruud & Tinga, Tiedo, 2017. "The influence of practical factors on the benefits of condition-based maintenance over time-based maintenance," Reliability Engineering and System Safety, Elsevier, vol. 158(C), pages 21-30.
    11. Wang, Wenbin & Syntetos, Aris A., 2011. "Spare parts demand: Linking forecasting to equipment maintenance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1194-1209.
    12. Poppe, Joeri & Basten, Rob J.I. & Boute, Robert N. & Lambrecht, Marc R., 2017. "Numerical study of inventory management under various maintenance policies," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 262-273.
    13. Shahraki, Ameneh Forouzandeh & Yadav, Om Prakash & Vogiatzis, Chrysafis, 2020. "Selective maintenance optimization for multi-state systems considering stochastically dependent components and stochastic imperfect maintenance actions," Reliability Engineering and System Safety, Elsevier, vol. 196(C).
    14. Hu, Qiwei & Boylan, John E. & Chen, Huijing & Labib, Ashraf, 2018. "OR in spare parts management: A review," European Journal of Operational Research, Elsevier, vol. 266(2), pages 395-414.
    15. Wang, Jingjing & Qiu, Qingan & Wang, Huanhuan, 2021. "Joint optimization of condition-based and age-based replacement policy and inventory policy for a two-unit series system," Reliability Engineering and System Safety, Elsevier, vol. 205(C).
    16. Do, Phuc & Assaf, Roy & Scarf, Phil & Iung, Benoit, 2019. "Modelling and application of condition-based maintenance for a two-component system with stochastic and economic dependencies," Reliability Engineering and System Safety, Elsevier, vol. 182(C), pages 86-97.
    17. Lu, Biao & Zhou, Xiaojun, 2017. "Opportunistic preventive maintenance scheduling for serial-parallel multistage manufacturing systems with multiple streams of deterioration," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 116-127.
    18. Xu, Jun & Liang, Zhenglin & Li, Yan-Fu & Wang, Kaibo, 2021. "Generalized condition-based maintenance optimization for multi-component systems considering stochastic dependency and imperfect maintenance," Reliability Engineering and System Safety, Elsevier, vol. 211(C).
    19. Petchrompo, Sanyapong & Parlikad, Ajith Kumar, 2019. "A review of asset management literature on multi-asset systems," Reliability Engineering and System Safety, Elsevier, vol. 181(C), pages 181-201.
    20. Huynh, K.T. & Vu, H.C. & Nguyen, T.D. & Ho, A.C., 2022. "A predictive maintenance model for k-out-of-n:F continuously deteriorating systems subject to stochastic and economic dependencies," Reliability Engineering and System Safety, Elsevier, vol. 226(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:257:y:2017:i:1:p:209-222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.