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Turkish Journal of Mathematics

Author ORCID Identifier

ERHUN ÖZKAN: 0000-0001-6870-9495

Abstract

We study maintenance operations for capital goods with repairable components. Because the downtime of a capital good is costly, the maintenance provider keeps an inventory of spare parts to quickly replace broken parts of the capital goods. After the replacement, the broken part is added to the repair facility’s repair queue. Upon a part breakdown, if there is no spare part in the inventory, then the maintenance provider has two options: (i) it can backorder the spare part demand, (ii) it can execute an emergency repair, which is done immediately and quickly, and is followed by a quick installation of the part to the capital good. The objective is to minimize the summation of the long-run average costs of emergency repairs, demand backorders, and inventory holding. We study an open network of repairable parts in which the demand for the repair facility is exogenous. Due to the curse of dimensionality, exact analysis is challenging; therefore, we consider the system in the heavy-traffic asymptotic regime. In the heavy-traffic limit, we formulate a Brownian control problem (BCP). Because the BCP is multidimensional, we establish a state-space collapse result showing that the multidimensional BCP is equivalent to a single-dimensional stochastic control problem. We solve the latter control problem analytically using stochastic calculus. By mimicking the optimal solution, we propose a straightforward heuristic control policy that can be easily implemented in practice.

DOI

10.55730/1300-0098.3776

Keywords

Repair facility, inventory, scheduling, stochastic control, stochastic calculus

First Page

950

Last Page

969

Publisher

The Scientific and Technological Research Council of Türkiye (TÜBİTAK)

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Included in

Mathematics Commons

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