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Innovative maintenance problem in a two-stage production-inventory system with imperfect processes

  • Rung-Hung Su
  • Ming-Wei WengEmail author
  • Yung-Fu Huang
Original Research
  • 33 Downloads

Abstract

The specification of a product is frequently changed to satisfy new requirement from market buyers. To maintain market competitiveness, manufacturers must plan innovative production and sale strategies to achieve maximum benefit. This activity is known as innovative maintenance (IM). In this paper, we therefore consider a two-stage production-inventory model with replacement and imperfect component processes during which the components replacement is a common issue of IM. We then find the optimal production and sale strategies that minimize the total cost per unit time. An algorithm is proposed to find these optimal solutions. Finally, we quote two numerical examples from the Taiwan polyurethane industry to illustrate the proposed model and algorithm. Sensitivity analysis is also performed to obtain some managerial insights.

Keywords

Innovative maintenance Multi-stage production system Imperfect processes EPQ model 

Notes

Compliance with ethical standards

Ethical statements

This paper complies with the provisions of ethical responsibilities of authors.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Department of Statistics and Information ScienceFu Jen Catholic UniversityNew Taipei CityTaiwan
  2. 2.Department of Marketing and Logistics ManagementChaoyang University of TechnologyTaichungTaiwan

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