Abstract
This paper deals with the optimal production/maintenance (PM) policy for a deteriorating production system which may shift from the in-control state to the out-of-control state while producing items. The process is assumed to have a general shift distribution. Under the commonly used maintenance policy, equal-interval maintenance, the joint optimizations of the PM policy are derived such that the expected total cost per unit time is minimized. Different conditions for optimality, lower and upper bounds and uniqueness properties on the optimal PM policy are provided. The implications of another commonly used policy, to perform a maintenance action only at the end of the production run, are also discussed. Structural properties for the optimal policy are established so that an efficient solution procedure is obtained. In the exponential case, some extensions of the results obtained previously in the literature are presented. A numerical example is provided to illustrate the solution procedure for the optimal production and maintenance policy.
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Acknowledgements
We would like to thank a referee and the Editor for their helpful comments on an earlier version of this paper.