Joint production and maintenance optimization in flexible hybrid Manufacturing–Remanufacturing systems under age-dependent deterioration

• Published in: International journal of production economics Vol. 216; pp. 239 - 254
• Main Authors: Polotski, V., Kenne, J.-P., Gharbi, A.
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.10.2019
• Subjects: Failures; Feasibility conditions; Numerical methods; Preventive maintenance; Remanufacturing; Stochastic process; Feasibility conditions; Stochastic process; Remanufacturing; Failures; Numerical methods; Preventive maintenance
• ISSN: 0925-5273; 1873-7579
• DOI: 10.1016/j.ijpe.2019.04.023

We consider a hybrid manufacturing–remanufacturing system that consists of a flexible machine capable of sharing its production time between manufacturing mode in which raw materials are used in production process and remanufacturing mode in which returned products are used instead. The machine is supposed to be failure-prone and subject to age-dependent deterioration. Returned products vary significantly in type and quality due to different collection and recovery procedures. This variability often adversely affects machine operation in remanufacturing mode. To investigate the role of this factor within deterioration/maintenance framework, we suppose that machine's age-dynamics depends mainly on the remanufacturing intensity. This deterioration is characterized by the increasing failure rate and thus leads to the loss of machine availability. Preventive maintenance is used to recover the machine availability. Combined optimization of manufacturing, remanufacturing and maintenance policies is considered. It aims at minimizing the total cost that comprises manufacturing, remanufacturing, maintenance, inventory and backlog costs. This problem for flexible hybrid manufacturing–remanufacturing deteriorating systems was rarely considered in the literature. The problem is addressed using stochastic dynamic programming approach, leading to numerical solution of Hamilton-Jacobi-Bellman equations. Feasibility conditions for age-deteriorating systems are developed. Numerical examples and sensitivity analysis are used to determine the key characteristics of the system and to describe the system behaviors under optimal strategies. •Hybrid systems utilizing the same facility for manufacturing and remanufacturing.•Systems are failure prone and subject to deterioration and preventive maintenance.•Feasibility conditions for deteriorating systems with maintenance are developed.•Joint production and maintenance optimal policy is constructed.•Easy to implement decision-making procedure useable by managers is proposed.