Joint Optimization of Production Plan and Preventive Maintenance Schedule by Stackelberg Game

Abstract

This paper considers the situation where the production planning sector has decision making priority over the maintenance sector. The production rate of each production period (PP) varies with different lot size of each PP. An extended imperfect preventive maintenance (PM) model is proposed for a system running with time-varying production rate. The Stackelberg game theory model is adopted to handle the interactive effect between production plan and PM schedule; meanwhile, it embodies the decision priority of the production planning sector. In the Stackelberg game theory model, the production planning sector is assigned to be the leader with the decision variable of production rate of each PP, and the maintenance sector to be the follower with the decision variable of PM schedule. Firstly, the optimal lot size of each item for each PP is obtained for the production planning sector. Then, the optimal production rate of each PP and PM sequences are obtained simultaneously by regarding the total lot size of each PP as the objective. The availability loss caused by maintenance operations and effect of production rate on hazard rate function of system have been considered. An example is studied to illustrate the effectiveness of the model, also the results are fully analyzed.