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>Optimizing the integrated economic production quantity for a stochastically deteriorating production system under condition-based maintenance
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Optimizing the integrated economic production quantity for a stochastically deteriorating production system under condition-based maintenance
This paper proposes a new integrated economic production quantity (EPQ) and condition-based maintenance (CBM) model for a stochastically deteriorating production system. Inspections are performed periodically to measure the real time degradation. The system fails (out-of-control) whenever its degradation is beyond a critical threshold level. In the out-of-control state, a proportion of nonconforming items are produced. To assess the degradation of the system and to increase the production of conforming items, preventive maintenance (PM) actions are carried out. An integrated EPQ and CBM optimization model that minimizes the total expected cost rate over an infinite time horizon is developed. The objective is to determine a joint optimal EPQ and PM strategy minimizing the sum of inspection/maintenance and setup costs, cost of nonconforming items in addition to inventory holding cost. Numerical experiments are provided to illustrate the proposed approach.
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