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The value of maintenance delay flexibility for improved spare parts inventory management

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  • Basten, Rob J.I.
  • Ryan, Jennifer K.

Abstract

Capital assets are typically maintained by replacing components with spare parts. Often, there is flexibility to delay planned, preventive maintenance when spare parts are required to perform more urgent unplanned, corrective maintenance. In this case, keeping a single stock of inventory to satisfy both types of demand can be beneficial. Therefore, we study a periodic review inventory system with a single stocking point and a zero replenishment lead time, used to meet lower-priority demands that are planned, as well as stochastic, high-priority demands. We study the impact of flexibility in performing planned maintenance on the optimal inventory policy. When planned maintenance may be delayed at most once, i.e., for one period, a myopic policy is optimal. When it may be delayed to the next period for an unlimited number of times, we characterize the structure of the optimal policy. We further propose two extensions, one in which delayed planned maintenance may become unplanned and one in which the total maintenance delay costs are increasing and convex in the number of delayed maintenance actions. Numerically, we find that allowing a single delay provides a system performance very close to that when unlimited delays are allowed. This result becomes even stronger in the context of the two model extensions. These results are important for practice, since maintenance managers are unlikely to accept the unlimited delay policy, while the one delay policy is likely to be more acceptable. Finally, we develop myopic heuristic policies and demonstrate that they perform quite close to optimal.

Suggested Citation

  • Basten, Rob J.I. & Ryan, Jennifer K., 2019. "The value of maintenance delay flexibility for improved spare parts inventory management," European Journal of Operational Research, Elsevier, vol. 278(2), pages 646-657.
  • Handle: RePEc:eee:ejores:v:278:y:2019:i:2:p:646-657
    DOI: 10.1016/j.ejor.2019.04.023
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    References listed on IDEAS

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    Cited by:

    1. Oguzhan Vicil, 2021. "Optimizing stock levels for service-differentiated demand classes with inventory rationing and demand lead times," Flexible Services and Manufacturing Journal, Springer, vol. 33(2), pages 381-424, June.
    2. Dursun, İpek & Akcay, Alp & van Houtum, Geert-Jan, 2024. "How good must failure predictions be to make local spare parts stock superfluous?," International Journal of Production Economics, Elsevier, vol. 267(C).
    3. Yahel Giat, 2024. "Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System," Logistics, MDPI, vol. 8(2), pages 1-19, March.
    4. Sun, Mingyao & Ng, Chi To & Wu, Feng & Cheng, T.C.E., 2022. "Optimization of after-sales services with spare parts consumption and repairman travel," International Journal of Production Economics, Elsevier, vol. 244(C).

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