One of important processes in the foundry and casting division at PT. Pindad is the metal melting process on the induction furnace machine. The machine is operated by using a control panel, that can control only one machine at a time. There are two machines and one control panel. By then, if one machine is used, the other machine serves as a backup that immediately used when the operated machine are failed. Machine failure occured frequently due to the leakage in the hydraulic pipe. This study presents the optimization of hydraulic pipe preventive replacement. Two machines with single panel are considered as a system with a standby unit. Optimization is performed using dynamic programming approach. The resulting solution is a sequential decisions that minimizing the total expected repair and replacement cost for a finite horizon planning.
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