Near-Optimal Production and Maintenance Control for Failure Prone Production Systems with Demand Uncertainty

Abstract

Under the circumstances that the demand is uncertain, furthermore, the demand sometimes cannot be satisfied by the production, the paper studies the production and maintenance control problem of failure prone production systems. For the hybrid system, a so-called double level hedging point control policy considering purchasing extra production or maintenance capacity is presented, which has strong dynamic characteristics. By the method that studies the problem from over the finite horizon to over the infinite horizon, meanwhile, utilizing a decomposition method, the corresponding hedging points are obtained respectively. The numerical comparison specifies and to some extent testifies the method.

Data-driven decision-making in maintenance management and coordination throughout the asset life cycle: an empirical study

“…To jointly control planned maintenance and production rates in a system with uncertain demands, a double-level hedging point policy can be implemented (Jun et al, 2004). Further, a double-level hedging point control policy under uncertain production demand can be applied to decide between purchasing additional production capacities or adding additional maintenance measures (Liu et al, 2007). Xanthopoulos et al (2017) use reinforcement learning for joint maintenance and production planning to optimize the tradeoff between service levels and product inventory.…”