Integrated maintenance scheduling inventory policy adjustment considering back order disruptions using joint optimization approach

Abstract

PurposeThe purpose of this paper is to present an integrated strategy for inventory control and preventive maintenance planning for a single-machine production system with increasing failure rates.Design/methodology/approachThere are three scenarios for solving presented model. The strategy is such that the production component is placed under maintenance as soon as it reaches the m level or in the event of a malfunction earlier than m. Maintenance completion time is not predictable. As a result of periodic maintenance, a buffer stock h is held and the production component starts to produce from period A with the maximum throughput to satisfy demand and handle the shortage. A numerical algorithm to find the optimal policy is developed. The algorithm is implemented using MATLAB software.FindingsThe authors discovered that joint optimization mainly reduces production system costs. Cs is holding cost of a product unit during a unit of time. The authors consider two values for Cs, consist of, Cs = 1 and Cs = 2. By comparing the two cases, it is concluded that by reducing the cost from Cs = 2 to Cs = 1, the optimal scenario does not differ. The amount of decision variables decreases.Originality/valueThis paper is the provision of a model in which the shortage of back order type is considered, which greatly increases the complexity of the problem compared to similar issues. The methods for solving such problems are provided by the numerical algorithm, and the use of buffers as a way to compensate for the shortage in the event of a complete shutdown of the production line which is a very effective and efficient way to deal with customer loss.