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The Repair Kit Problem with positive replenishment lead times and fixed ordering costs

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  • Prak, Dennis
  • Saccani, Nicola
  • Syntetos, Aris
  • Teunter, Ruud
  • Visintin, Filippo

Abstract

The Repair Kit Problem (RKP) concerns the determination of a set of items taken by a service engineer to perform on-site product support. Such a set is called a kit. Models developed in the literature have always ignored the lead times associated with delivering items to replenish the kit, thereby limiting the practical relevance of the proposed solutions. Motivated by a real life case, we develop a model with positive lead times to control the replenishment quantities of the items in the kit, and study the performance of (s, S) policies under a service objective. The choice for (s, S) policies is made in order to accommodate fixed ordering costs. We present a method to calculate job fill rates with exact expressions, and discuss a heuristic approach to optimize the reorder level and order-up-to level for each item in the kit. The empirical utility of the model is assessed on real world data from an equipment manufacturer and useful insights are offered to after-sales managers.

Suggested Citation

  • Prak, Dennis & Saccani, Nicola & Syntetos, Aris & Teunter, Ruud & Visintin, Filippo, 2017. "The Repair Kit Problem with positive replenishment lead times and fixed ordering costs," European Journal of Operational Research, Elsevier, vol. 261(3), pages 893-902.
    • Handle: RePEc:eee:ejores:v:261:y:2017:i:3:p:893-902
    DOI: 10.1016/j.ejor.2017.02.019
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    Cited by:

    1. Rippe, Christoph & Kiesmüller, Gudrun P., 2023. "The repair kit problem with imperfect advance demand information," European Journal of Operational Research, Elsevier, vol. 304(2), pages 558-576.
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    3. Mashud, Abu Hashan Md & Chakrabortty, Ripon K. & Hussain, Omar K. & Choi, Tsan-Ming, 2024. "Reducing emissions from production and distribution in three-echelon supply chains," International Journal of Production Economics, Elsevier, vol. 271(C).
    4. Prak, Dennis & Rogetzer, Patricia, 2022. "Timing intermittent demand with time-varying order-up-to levels," European Journal of Operational Research, Elsevier, vol. 303(3), pages 1126-1136.
    5. Neves-Moreira, Fábio & Veldman, Jasper & Teunter, Ruud H., 2021. "Service operation vessels for offshore wind farm maintenance: Optimal stock levels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    6. Christoph Rippe & Gudrun P. Kiesmüller, 2023. "The added value of advance demand information for the planning of a repair kit," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 31(1), pages 311-335, March.

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