@article{(Open Science Index):https://publications.waset.org/pdf/10010545, title = {Optimal Production and Maintenance Policy for a Partially Observable Production System with Stochastic Demand}, author = {Leila Jafari and Viliam Makis}, country = {}, institution = {}, abstract = {In this paper, the joint optimization of the economic manufacturing quantity (EMQ), safety stock level, and condition-based maintenance (CBM) is presented for a partially observable, deteriorating system subject to random failure. The demand is stochastic and it is described by a Poisson process. The stochastic model is developed and the optimization problem is formulated in the semi-Markov decision process framework. A modification of the policy iteration algorithm is developed to find the optimal policy. A numerical example is presented to compare the optimal policy with the policy considering zero safety stock.}, journal = {International Journal of Industrial and Systems Engineering}, volume = {13}, number = {7}, year = {2019}, pages = {449 - 456}, ee = {https://publications.waset.org/pdf/10010545}, url = {https://publications.waset.org/vol/151}, bibsource = {https://publications.waset.org/}, issn = {eISSN: 1307-6892}, publisher = {World Academy of Science, Engineering and Technology}, index = {Open Science Index 151, 2019}, }