Simultaneous production and maintenance planning for a single capacitated resource facing both a dynamic demand and intensive wear and tear

This paper presents a generic modeling framework to simultaneously decide about production quantities and maintenance operations for a capacitated resource facing a dynamic demand for different types of products. As the resource needs to be setup for each specific type of product, a lot-sizing problem occurs. In addition it is assumed that production causes intensive wear and tear. For this reason frequent maintenance activities need to be coordinated with the production operations in order to efficiently use the capacitated resource. A single generic model is presented to capture alternative forms of maintenance and different modes of interaction between maintenance and setups. As the model is numerically intractable for standard branch & bound algorithms, we solve it heuristically via a decomposition using a Fix-and-Optimize approach. Numerical results show that the proposed solution method produces high-quality results quickly. We further study the impact of simultaneous vs. sequential decisions about production and maintenance in the case of intensive wear and tear.