%0 Journal Article
	%A Leila Jafari and  Viliam Makis
	%D 2019
	%J International Journal of Industrial and Systems Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 151, 2019
	%T Optimal Production and Maintenance Policy for a Partially Observable Production System with Stochastic Demand
	%U https://publications.waset.org/pdf/10010545
	%V 151
	%X 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.
	%P 449 - 456