Optimal hedging surface policy for manufacturing flow and preventive maintenance

E. K. Boukas*, H. Yang

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review


In this paper, we address the optimal control problem of the production rate and maintenance rate of a failure prone manufacturing system. The discounted cost of our optimization problem is assumed to be a function of the inventory and the maintenance rate, where certain cost rates are specified for positive and negative inventories and maintenance, and there is a constant demand rate for the commodity produced. The objective of this paper is to choose the rates of production and maintenance to minimize a discounted cost over the infinite horizon. It aims at partially characterizing the optimal solution of the problem. In the case where the maximum maintenance rate v̄ is equal to a constant coefficient times the maximum production rate ū, we obtain a solution and show that the optimal solution is characterized by a critical surface, namely 'hedging surface', and we give its description.

Original languageEnglish
Pages (from-to)607-608
Number of pages2
JournalProceedings of the IEEE Conference on Decision and Control
Publication statusPublished - 1994
Externally publishedYes
EventProceedings of the 33rd IEEE Conference on Decision and Control. Part 1 (of 4) - Lake Buena Vista, FL, USA
Duration: 14 Dec 199416 Dec 1994


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