Joint condition-based maintenance and inventory optimization for systems with multiple components

Efficient (condition-based) maintenance planning and inventory control of spares for critical components jointly determine the effectiveness of a maintenance strategy and, thereby, balance system uptime and maintenance costs. Duplicating an optimal policy for a single-component system to a multi-component system is not necessarily optimal, while a separate or sequential optimization of the maintenance and inventory decisions is also not guaranteed to yield the lowest costs. We therefore consider the joint optimization of condition-based maintenance and spares planning for multi-component systems. We formulate our model as a Markov Decision Process, and minimize the long-run average cost per time unit. A key insight from our numerical results is that the (s, S) inventory policy, popular in theory as well as practice, can be far from optimal for systems consisting of few components. Significant savings can be obtained by basing both the maintenance decisions and the timing of ordering spare components on the system’s condition.

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