Stochastic Dynamic Programming Model for the Quality Deterioration of an Unreliable Manufacturer

  • Héctor Rivera-Gómez Universidad Autónoma del Estado de Hidalgo
  • Oscar Montaño-Arango
  • José Ramón Corona-Armenta
  • Eva Selene Hernández-Gress


This paper proposes a new integrated model, which analyses deteriorations issues in the optimal control of an unreliable production system. The system under concern was composed of a machine subject to random failures, and repairs, which produced a part type with constant demand. Furthermore, the machine was subject to progressive deterioration reflected mainly in an increasing rate of defectives. Major maintenance such as overhaul was available as a countermeasure to mitigate the effect of the quality deterioration. Given the importance of inventory, backlog and maintenance cost, the main objective of the paper was to develop a control policy, which considered quality deterioration and states the joint production and overhaul strategies to minimize the total incurred cost. The structure of the joint control policy was defined through numerical techniques. The obtained results showed the strong influence of deterioration issues in the optimal control policy.