Production and Inventory Rationing in an Unreliable Mts System Under Preventive Maintenance Policy

Abstract

This paper proposes a joint optimization approach for the production decisionmaking and inventory allocation in a fault-prone machine supply chain system, considering production and supply uncertainty as well as the impact of machine failure. A model based on Markov decision theory is presented to more accurately reflect real-world production processes, utilizing a preventive repair maintenance strategy, which focuses on repairing the machine only when it fails, as opposed to traditional fixed-cycle or fixed-threshold maintenance strategies. To tackle the complex structure of the optimal control strategy, the paper employs a simulated annealing algorithm for updating the optimal strategy. Computational experiments are conducted to explain the properties of the optimal control strategies and emphasize the importance of considering a maintenance factor in the system. The study highlights the significance of effective production inventory system management, with the conclusion that the optimal control strategy is a machine-state-dependent threshold strategy.

Keywords: preventive maintenance, Optimal control strategy, Fault-prone Machine, Markov Decision Theory, Stationary analysis