Optimal modification of machine reliability by maintenance and production
The purpose of this paper is to extend the optimal maintenance model of \textit{M. I. Kamien} and \textit{N. L. Schwartz} [Manage. Sci., Appl. 17, B495-B504 (1971; Zbl 0219.90018)] by including the production rate as an additional control variable. Two models are considered: the first model deals with the optimal allocation of preventive maintenance of a machine and production, whereas in the second case both activities may be carried out independently and simultaneously. Using the maximum principle it is shown that for the optimal life time of the machine the optimal production rate increases monotonically with the age of the machine, whereas the optimal maintenance rate is decreasing. Thus, under the assumptions made it is, e.g., not optimal to counteract a decrease in the machine's survival probability arising from an increasing production rate by a higher maintenance rate.
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