| Abstract: | This paper considers the integration problem of production, maintenance and quality for a capacitated lot-sizing production system subject to deterioration. The effects of varying operational conditions from batch to batch on system reliability and product quality are modelled by proportional hazards models, resulting in non-monotonic failure rate and defect rate. After each batch production, imperfect preventive maintenance (PM) is determined to mitigate the system deterioration, and inspection is taken to sort nonconforming items in the finished goods. Once the cumulative number of nonconforming items exceeds a predetermined threshold, an overhaul is performed to renew the system. An integrated model for optimising production plan, PM plan and overhaul strategy is developed to minimise the total cost while satisfying all product demands. A genetic algorithm is proposed to solve the integrated model efficiently. Numerical results validate the rationality of the model with varying operational conditions consideration and its applicability in economic benefits. |
