Optimal Control of Supply Chain Systems with Preventive Maintenance Decisions
This chapter considers the optimal control problem for supply chains with preventive maintenance decisions. The manufacturer has failure-prone machines with options to perform preventive maintenance to reduce the failure rate. However, performing preventive maintenance could affect the production capacity. Therefore, when to perform preventive maintenance should be determined together with other supply chain management decisions. Both time-dependent failure mode and operation-dependent failure mode are considered. We first seek the optimal integrated control of raw material ordering, finished goods production, and preventive maintenance in the basic stochastic supply chain with unreliable machines. Then, we focus on the joint production and preventive maintenance for a simpler failure-prone manufacturing supply chain, in which the raw material ordering activity is not considered. Numerical examples are given to illustrate the control structure of the optimal policies.
KeywordsSupply Chain Preventive Maintenance Maintenance Policy Supply Chain System Machine Failure
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