A Condition-based maintenance and spare parts provisioning based on markov chains

Machine is a vital tool of the company in helping the production process. Every company expects the production to run smoothly, but sometimes it is hampered by damage that happened to the machine, so that the production process is disrupted and causes losses to the company. Engine damage can be minimized by regularly evaluating the condition of the spare parts. In practice, if the spare parts inventory policy is not accurate it will cause stock outs or overstocks, which can lead to more costs for the company. The worst case is if there is no spare part stored in the warehouse when it is needed, it can make the production floor stopped, which in the end makes the company can't fulfil their production target. This research aims to obtain an optimal preventive maintenance schedule by calculating the machine's reliability and inventory provisioning policy for the spare parts according to predicted amount that will be needed in the future calculated using Markov chains so the company can determine the reorder point (r) and the economic order quantity (EOQ).