Joint production and maintenance strategy for economic production quantity model with imperfect production processes

In this study, an economic production quantity (EPQ) model is generalized by considering maintenance and production programs for an imperfect process involving a deteriorating production system with increasing hazard rate. There are two types of preventive maintenance (PM), namely imperfect PM and perfect PM. The probability that perfect PM is performed depends on the number of imperfect maintenance operations performed since the last renewal cycle. Following a failure, the delayed repair performs some restorations and reduces production rate to restore the system into an operating state (in-control state), but leaves its lower production rate until perfect PM is performed. That is, the production run period not always starts in normal production rate. This study considers backorders, as well as loss of inventory due to the lower production rate. For the EPQ model, the optimum run time, which minimizes the total cost, is discussed. Various special cases are considered, including the maintenance learning effect. Finally, a numerical example is presented to illustrate the effects of PM ability, repair cost and production decreasing rate on total costs and production period.