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A stochastic machine maintenance and sale problem: Results with different production functions

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  • Mark G. Tang

Abstract

In this article we solve and analyze a stochastic version of the Boiteux problem by employing the stochastic optimal control method. Our setup is close to that of Thompson [22]. Our focus is to analyze, under the same structure, how different production functions and how the variance in machine deterioration/maintenance affect our optimal machine maintenance and sale date decisions. © 1993 John Wiley & Sons, Inc.

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  • Mark G. Tang, 1993. "A stochastic machine maintenance and sale problem: Results with different production functions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(5), pages 677-696, August.
    • Handle: RePEc:wly:navres:v:40:y:1993:i:5:p:677-696
    DOI: 10.1002/1520-6750(199308)40:53.0.CO;2-3
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    8. William P. Pierskalla & John A. Voelker, 1976. "A survey of maintenance models: The control and surveillance of deteriorating systems," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 23(3), pages 353-388, September.
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