Construction and Maintenance Decisions for Multi-Unit Deteriorating Facilities

by Robert I. Carr, Univ of Michigan, Ann Arbor, United States,
Chang-Duk Kim, Univ of Michigan, Ann Arbor, United States,

Abstract: Facilities that deteriorate over time and use can require maintenance or replacement. Selecting among replacement and maintenance alternatives for large systems of deteriorating facilities is challenging, because decisions are dynamic and budgets are usually constrained. This paper describes a new computer approach, called aggregated linear programming (LP), to manage large deteriorating systems. The model collects similar units into aggregates, and it relaxes the integrality requirements of decision variables from an original integer program (IP) at a small loss of optimality. The model also reduces the number of feasible alternatives efficiently by introducing threshold concepts, and it captures the interdependence of alternatives over time by using vector and matrix concepts. Finally, it uses LP techniques to select the best alternative for each aggregate, which is also the best alternative for the aggregate's units.

Subject Headings: Deterioration | Maintenance | Computer programming | Aggregates | Linear functions | Budgets | Systems management | Vector analysis

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