Joint Condition-Based Maintenance and Condition-Based Production Optimization in Production System with Finite Planning Horizon and Predetermined Demand

The goal of management in a production system is to reduce the overall maintenance costs and increase the availability or reliability of the system. Given that maintenance costs have become a large part of system life cycle costs, these measures are becoming more complex and important. Condition-based maintenance is one of the most common types of maintenance strategies that suggest actions based on monitoring the system's condition. Recent developments in the field of sensors and the Internet of Things increasingly enable remote monitoring and control of production equipment in real time. Organizations can take advantage of these opportunities to reduce costs and increase reliability by using condition-based maintenance policies. In addition to maintenance actions, another suggested option to control system failure rates, reduce costs, and increase system reliability and availability is to adopt condition-based production policies that control equipment failure through dynamic adaptation of production rates. In this paper, condition-based maintenance and production in a system with fixed demand is introduced, which integrates both maintenance and production policies. Integrating production decisions into a condition-based maintenance policy reduces the risk of system failure and causes fewer maintenance actions to be taken, thereby reducing overall system costs. This problem is modeled by the Markov decision process and then by the value iteration algorithm, the optimal policies are adopted for each state.