Joint Determination of Preventive Maintenance and Buffer Stock with Sudden Obsolescence and Machine Breakdowns
Keywords:
Preventive maintenance, Buffer stock, Sudden obsolescenceAbstract
In this work, a production unit subject to random breakdowns and periodic preventive maintenance (PM) is investigated. This production unit is used to produce input for the subsequent production stage. To ensure that the subsequent production stage has sufficient input, a certain amount of buffer amount of buffer stock is produced for use during breakdowns and PM. However, due to the rapid change of technology today, producing excessive buffer stocks increases the risk that those buffer stocks will suddenly become obsolete incurring obsolescence cost to the firm. Therefore, in this paper, we develop a mathematical model to determine the optimal PM period and the optimal size of buffer stock minimizing the total expected cost during the product lifetime. This cost includes inventory-related cost, maintenance cost, and obsolescence cost.
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