Optimal Maintenance and Sale Age for a Machine Subject to Failure
A problem of optimal machine maintenance policy is studied. The value of the machine's output is independent of age, but the natural probability of machine failure increases with age. Preventive maintenance can be applied to reduce the probability of machine failure (but a failed machine can only be junked). The machine may be sold at any time providing it is still effective. The problem is to select an optimal preventive maintenance policy for the period of ownership and a planned sale date at which the machine will be sold providing it has not yet failed. The optimal policy calls for a continuous nonincreasing maintenance rate, although not necessarily a decreasing rate of maintenance expenditure. The necessary condition for machine age at sale is critical in the determination of optimal maintenance policy. The necessary conditions for an optimal maintenance policy are shown to be sufficient as well. The novelty of the approach lies in the explicit distinction between the machine's "natural" failure rate and the actual failure rate resulting from selection of preventive maintenance policy.
Volume (Year): 17 (1971)
Issue (Month): 8 (April)
|Contact details of provider:|| Postal: |
Web page: http://www.informs.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:17:y:1971:i:8:p:b495-b504. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.