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An economic production quantity model for a deteriorating system integrated with predictive maintenance strategy

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Abstract

While there has been considerable work over the years on the basic deterministic economic production quantity (EPQ) and its derivative models, there have been few extensions of these models that recognize the potential effects of machine degradation. As maintenance activities can keep machines in good operation, it should be integrated into EPQ models to meet real situations. Due to machine degradation, this paper integrates predictive maintenance into EPQ model in which autoregressive integrated moving average model is adopted to predict system’s healthy indicator. Moreover, two kinds of system out-of-control states are considered in this proposed EPQ model: in State I, the system produces non-conforming items; and in State II, the system fails. Aiming at minimizing the expected average total cost and optimizing the EPQ, suitable maintenance intervals and frequency are determined prior to any predicted failure. Finally, a case study is presented and the computational results are discussed to show the efficiency of this integrated EPQ model.

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Acknowledgments

The authors would like to thank anonymous referees for their remarkable comments and great supported by National Natural Science Foundation of China (50875168, 71301176), Natural Science Foundation of Shanghai, China (Grant No. 12ZR1414400), Fundamental Research Funds for the Central Universities (CDJZR12110004), and Research Fund for the Doctoral Program of Higher Education (20130191120001).

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Authors and Affiliations

  1. Department of Industrial Engineering and Logistics Engineering, Shanghai Jiao Tong University, Shanghai, 200240, China

    Da Wen, Pan Ershun & Wang Ying

  2. College of Mechanical Engineering, Chongqing University, Chongqing, 400044, China

    Liao Wenzhu

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  1. Da Wen
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  2. Pan Ershun
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  3. Wang Ying
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  4. Liao Wenzhu
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Correspondence to Pan Ershun.

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Wen, D., Ershun, P., Ying, W. et al. An economic production quantity model for a deteriorating system integrated with predictive maintenance strategy. J Intell Manuf 27, 1323–1333 (2016). https://doi.org/10.1007/s10845-014-0954-z

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  • DOI: https://doi.org/10.1007/s10845-014-0954-z

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