Lot sizing and maintenance planning for a deteriorating machine with random yields

Yisha Xiang, C. Richard Cassady

Research output: Contribution to conferencePaper

Abstract

In this paper we investigate a production and maintenance planning problem in a periodic review environment with stochastic demand and random yields. We focus on a single-period, single-product, single machine production-inventory system with random yields, and aim to optimize the production and maintenance policies. The manufacturing system deteriorates from period to period according to a discrete-time Markov chain. The objective is to find an integrated lot-sizing and maintenance strategy for the system that minimizes the expected sum of production cost, holding cost, backlogging cost and maintenance cost. We formulate a single-period problem and analyze the structural properties of the optimal policies.

Original languageEnglish
StatePublished - 2011
Event61st Annual Conference and Expo of the Institute of Industrial Engineers - Reno, NV, United States
Duration: May 21 2011May 25 2011

Conference

Conference61st Annual Conference and Expo of the Institute of Industrial Engineers
CountryUnited States
CityReno, NV
Period05/21/1105/25/11

Keywords

  • Lot sizing
  • Random yield
  • Stochastic deterioration

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  • Cite this

    Xiang, Y., & Cassady, C. R. (2011). Lot sizing and maintenance planning for a deteriorating machine with random yields. Paper presented at 61st Annual Conference and Expo of the Institute of Industrial Engineers, Reno, NV, United States.