Preventive maintenance and optimal buffer inventory for products sold with warranty in an imperfect production system

Abstract

This paper deals with an imperfect production system with allowable shortages due to regular preventive maintenance for products sold with free minimal repair warranty. Preventive maintenance is an essential factor of the just-in-time structure that results in a shutdown of the production process for a certain period of time. During such an interruption, a buffer stock is needed to adjust the market demand. The study includes the possibility of imperfect production and determines the optimum buffer level and production run time by trading off the holding cost, shortage cost, rework cost, repair cost for warranty, labour/energy costs, material cost and cost for maintenance so that the cost per unit product is minimised.