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G-97-22

Hedging Point Policy Improvement

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This paper deals with the production and the corrective maintenance planning control problem for failure prone manufacturing systems. The introduction of the corrective maintenance will increase the availability of the manufacturing system which guarantees the improvement of the system's productivity if the production planning is well done. For the one machine one part system, we will show that our planning control problem is more efficient than the one given by Akella and Kumar. We also show that the hedging level is lower than the one obtained by Akella and Kumar.

, 26 pages