Near-Optimal Production and Maintenance Control for Failure Prone Production Systems with Demand Uncertainty

Under the circumstances that the demand is uncertain, furthermore, the demand sometimes cannot be satisfied by the production, the paper studies the production and maintenance control problem of failure prone production systems. For the hybrid system, a so-called double level hedging point control policy considering purchasing extra production or maintenance capacity is presented, which has strong dynamic characteristics. By the method that studies the problem from over the finite horizon to over the infinite horizon, meanwhile, utilizing a decomposition method, the corresponding hedging points are obtained respectively. The numerical comparison specifies and to some extent testifies the method.