Joint optimisation of maintenance and production policies considering random demand and variable production rate

This paper deals with a randomly failing manufacturing system M1 which has to satisfy a random demand during a finite horizon given a required service level. To help meet this demand, subcontracting is used through another production system M2. M1 operates with a variable production rate and its failure rate depends on both time and the production rate. In these conditions, as a first step, we establish a preliminary production plan corresponding to a given service level. In a second stage, we integrate the effect of the machine degradation introducing a unitary degradation cost. The optimal production plan is then obtained by minimising the sum of the production, the inventory and the degradation costs. In the final stage, we propose another optimal plan combined with a preventive maintenance policy aiming at reducing the machine degradation while minimising the total cost including the production, inventory and maintenance costs.