Operations Research, Systems Engineering and Industrial Engineering Commons^™

On The Problem Of Production Deadline And Maintenance Outsourcing, Sharafali Moosa, Hakan Tarakci

Hakan Tarakci

In this paper we consider a production-maintenance problem in which a buyer and a supplier have already entered into a contractual relationship for a firm delivery date. Our focus is on the production-related decisions of the supplier rather than the nature of the contract itself. We assume that production rate is actually constant as long as the system is up and running but randomness arises in production due to downtimes as a result of unpredictable failures (breakdowns) and scheduled preventive maintenance activities. Production maintenance is outsourced. As production output is random due to unreliable production facilities, the supplier needs to …