Joint optimal inspection and inventory for a k-out-of-n system

Purpose: The objective of this paper is to develop a model, which optimizes jointly the inspection frequency and the inventory level for a k-out-of-n system with repairable components whose failures are hidden. Scope: The system is periodically inspected to detect failed components, and the components are either minimally repaired or replaced with spares from the inventory. The system fails between periodic inspections if n-k+1 components are down; in that case, all failed components are inspected and rectified if possible. Otherwise, the failed components are rectified at periodic inspections. An emergency spare is ordered at a system failure, if the inventory is empty and all failed components require replacement. Methodology: Using analytical approach to find the optimal solution is computationally intensive and not practical; a simulation model is developed to solve the problem. Results: The proposed model harmonizes the maintenance and inventory policies and finds the joint optimal solution which results in a minimum total cost. Conclusion: The joint optimization model results in a lower cost compared to separate maintenance and inventory optimization models. Novelty: Few joint models for k-out-of-n systems exist, and none of them investigate repairable components whose failures are hidden and follow a non-homogeneous Poisson process. (C) 2014 Elsevier Ltd. All rights reserved.