| Abstract: | In this article we formulate an analytical model of preventive maintenance and safety stock strategies in a production environment subject to random machine breakdowns. Traditionally, preventive maintenance and safety stocks have been independently studied as two separate strategies for coping with machine breakdowns. Our intent is to develop a unified framework so that the two are jointly considered. We illustrate the trade-off between investing in the two options. In addition, we provide optimality conditions under which either one or both strategies should be implemented to minimize the associated cost function. Specifically, cases with deterministic and exponential repair time distributions are analyzed in detail. We include numerical examples to illustrate the determination of optimal strategies for preventive maintenance and safety stocks. © 1997 John Wiley & Sons, Inc. |
