Ordering Policy for Planned Maintenance with Salvage Value

Abstract

A spare ordering policy is considered for planned maintenance. Introducing the ordering, uptime, downtime, inventory costs and salvage value, we derive the expected cost effectiveness. The problem is to determine jointly the ordering time for a spare and the preventive replacement time for the operating unit which maximize the expected cost effectiveness. Some properties regarding the optimal policy are derived, and a numerical example is included to explain the proposed model.

Citation

Park, Y.T. and Jing, S. (2006), "Ordering Policy for Planned Maintenance with Salvage Value", Asian Journal on Quality, Vol. 7 No. 3, pp. 15-23. https://doi.org/10.1108/15982688200600024