Abstract
This paper studies an economic manufacturing quantity (EMQ) model with two types of failures and planned preventive maintenance of the production facility. One is a type I (major) failure which should be corrected by a failure maintenance and the other is a type H (minor) failure which can be minimally repaired without interrupting the production run. The objective is to determine the lot size and preventive replacement policy minimizing the long-run expected cost per unit time. We consider a control policy with a constant production lot size and preventive maintenance after completing n production runs. It is assumed that both preventive and failure maintenance times are random and the demand arriving during a stock-out period is lost. An expression for the expected cost per unit time is obtained in the general case. A special case is discussed and numerical results are provided.