An integrated production and preventive maintenance planning model

We are given a set of items that must be produced in lots on a capacitated production system throughout a specified finite planning horizon. We assume that the production system is subject to random failures, and that any maintenance action carried out on the system, in a period, reduces the system's available production capacity during that period. The objective is to find an integrated lot-sizing and preventive maintenance strategy of the system that satisfies the demand for all items over the entire horizon without backlogging, and which minimizes the expected sum of production and maintenance costs. We show how this problem can be formulated and solved as a multi-item capacitated lot-sizing problem on a system that is periodically renewed and minimally repaired at failure. We also provide an illustrative example that shows the steps to obtain an optimal integrated production and maintenance strategy. (c) 2006 Published by Elsevier B.V.