Optimal Maintenance of a Production System with L Intermediate Buffers

We consider a production-inventory system that consists of an input-generating installation, a production unit and L intermediate buffers. It is assumed that the installation transfers the raw material j is an element of {1, . . . , L} to buffer B-j, and the production unit pulls the raw material j is an element of {1, . . . , L} from buffer B-j. We consider the problem of the optimal preventive maintenance of the installation if the installation deteriorates stochastically with usage and the production unit is always in operative condition. We also consider the problem of the optimal preventive maintenance of the production unit if the production unit deteriorates stochastically with usage and the installation is always in operative condition. Under a suitable cost structure and for given contents of the buffers, it is proved that the average-cost optimal policy for the first (second) problem initiates a preventive maintenance of the installation (production unit) if and only if the degree of deterioration of the installation (production unit) exceeds some critical level. Numerical results are presented for both problems.