Replacement decisions with maintenance under uncertainty: an imbedded optimal control model
Fraiman, N. M.
Institute for Operations Research and the Management Sciences (I N F O R M S)
785 - 794
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How should a manager make replacement decisions for a chain of machines over time if each is maintained by an optimal control model addressing uncertainty of machine breakdowns? A network representation of the problem involves arcs with interdependent costs. A solution algorithm is presented and replacement considerations under technological change are incorporated into a well-known optimal control model for maintenance under uncertainty (that of Kamien and Schwartz 1971). The method is illustrated by an example.
KeywordsDynamic programming/optimal control: models
Facilities/equipment planning: maintenance/replacement
Inventory/production policies: maintenance/replacement