Production and quality control policies for deteriorating manufacturing system

In this paper, a novel model for a deteriorating manufacturing system is analysed, considering repairs and overhauls of random durations. The machine manufactures one product and the model is further complicated because the quality of the parts’ produced deteriorates according to the wear of the machine and human interventions. When a breakdown occurs, either a repair or an overhaul is performed. The machine is restored to as-good-as-new conditions if the overhaul is selected, and conversely, its condition deteriorates following repairs. Multiple operational states are considered to define an ageing process. The decision variables of the model are the production rate and the repair/overhaul switching strategy. This paper provides new insights to this research area by considering the simultaneous production and repair/overhaul control policy under the effect of deteriorations. The optimal decision policy minimises the total incurred cost comprising the inventory, backlog, repair and overhaul costs over an infinite planning horizon. Our paper differs from other research projects in its consideration of the machine’s history, defined by the number of repairs and multiple operational states. A numerical example is given to illustrate the proposed approach and a sensitivity analysis has been conducted to confirm the structure of the obtained control policies.