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Joint optimal lot sizing and preventive maintenance policy for a production facility subject to condition monitoring

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  • Jafari, L.
  • Makis, V.

Abstract

In this paper, we consider the joint optimization of economic manufacturing quantity (EMQ) and preventive maintenance (PM) policy for a production facility subject to deterioration and condition monitoring (CM). Unlike the previous joint models of EMQ and maintenance policy which used traditional maintenance approaches, we propose the proportional hazards model (PHM) to consider CM information as well as the age of the production facility. The deterioration process is determined by the age and covariate values and the covariate process is modeled as a continuous-time Markov process. The condition information is available at each inspection epoch, which is the end of each production run. The hazard rate is estimated after obtaining the new information through CM. The problem is formulated and solved in the semi-Markov decision process (SMDP) framework. The objective is to minimize the long-run expected average cost per unit time. Also, the mean residual life (MRL) of the production facility is calculated as an important statistic for practical applications. A numerical example is provided and a comparison with the age-based policy shows an outstanding performance of the new model and the control policy proposed in this paper.

Suggested Citation

  • Jafari, L. & Makis, V., 2015. "Joint optimal lot sizing and preventive maintenance policy for a production facility subject to condition monitoring," International Journal of Production Economics, Elsevier, vol. 169(C), pages 156-168.
    • Handle: RePEc:eee:proeco:v:169:y:2015:i:c:p:156-168
    DOI: 10.1016/j.ijpe.2015.07.034
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    2. Cheng, Guo Qing & Zhou, Bing Hai & Li, Ling, 2018. "Integrated production, quality control and condition-based maintenance for imperfect production systems," Reliability Engineering and System Safety, Elsevier, vol. 175(C), pages 251-264.
    3. Bensmain, Yassir & Dahane, Mohammed & Bennekrouf, Mohammed & Sari, Zaki, 2019. "Preventive remanufacturing planning of production equipment under operational and imperfect maintenance constraints: A hybrid genetic algorithm based approach," Reliability Engineering and System Safety, Elsevier, vol. 185(C), pages 546-566.
    4. uit het Broek, Michiel A.J. & Teunter, Ruud H. & de Jonge, Bram & Veldman, Jasper, 2021. "Joint condition-based maintenance and condition-based production optimization," Reliability Engineering and System Safety, Elsevier, vol. 214(C).
    5. Qinming Liu & Ming Dong & Wenyuan Lv & Chunming Ye, 2019. "Manufacturing system maintenance based on dynamic programming model with prognostics information," Journal of Intelligent Manufacturing, Springer, vol. 30(3), pages 1155-1173, March.
    6. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    7. Zheng, Rui & Chen, Bingkun & Gu, Liudong, 2020. "Condition-based maintenance with dynamic thresholds for a system using the proportional hazards model," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    8. Xiangang Cao & Pengfei Li & Song Ming, 2021. "Remaining Useful Life Prediction-Based Maintenance Decision Model for Stochastic Deterioration Equipment under Data-Driven," Sustainability, MDPI, vol. 13(15), pages 1-19, July.
    9. Lin Wang & Zhiqiang Lu & Yifei Ren, 2019. "A rolling horizon approach for production planning and condition-based maintenance under uncertain demand," Journal of Risk and Reliability, , vol. 233(6), pages 1014-1028, December.
    10. Zheng, Rui & Wang, Jingjing & Zhang, Yingzhi, 2023. "A hybrid repair-replacement policy in the proportional hazards model," European Journal of Operational Research, Elsevier, vol. 304(3), pages 1011-1021.

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