Joint Planning in a Hybrid Manufacturing-Remanufacturing System Under Operational-Dependent Deterioration and Outsourcing Options

The present study explores the integration of production and operation-based maintenance planning within an unreliable hybrid manufacturing-remanufacturing system in an industrial outsourcing context. To address the system deterioration, we propose a maintenance strategy that includes minimal corrective maintenance upon failure, imperfect preventive maintenance that restores the machine to a condition between 'As Bad As Old' and 'As Good As New,' and an overhaul when the system's reliability reaches a specified threshold, returning it to its original condition at the start of the next period. We present a mixed-integer nonlinear formulation to optimize the integrated plan, aiming to minimize overall expenses, including manufacturing, remanufacturing, storage, maintenance, and outsourcing costs. Computational experiments are conducted to provide managerial insights derived from the developed strategy.