Integration of subcontracting activity in a production planning for randomly failing manufacturing system: Feasibility and profitability conditions
The production and corrective maintenance control problem of failure prone systems with demand uncertainty were dealt with. A variable demand resource is involved in the production and corrective maintenance control problems of failure prone systems, which switches randomly between zero and a maximum level. The optimal single-hedging point policy for the production and corrective maintenance may be replaced by a double-hedging point policy respectively. Their analytical solution is obtained. Considering the relationship of production, corrective maintenance and demand variable, an approximate single-hedging point control policy is proposed. Numerical results are presented.