Cannibalization policies for a set of parallel machines

Industries that invest in expensive machinery, e.g., the automobile manufacturing industry, are faced with the problem of deciding how to specify maintenance policies and allocate maintenance resources such that performance targets are achieved. The corresponding maintenance decisions can influence operating costs in various areas. Due to the typically large costs associated with the critical components of these machines, cannibalization actions are often used to meet pre-defined operational targets, e.g., production capacity. This research is focused on the construction of a closed-network, multi-echelon, discrete-event simulation model that is used to investigate the effects of Cannibalization and other maintenance policies on a manufacturing system consisting of a set of parallel machines. The simulation model is used as a decision-support tool for making cost/performance trade-offs among different maintenance policies or investments. Using a numerical example, we demonstrate a methodology for using the model to recommend optimal spare levels, part shipment policies, and Cannibalization decisions for meeting maintenance investment objectives while adhering to production capacity constraints.