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Fleet sizing of reusable articles under uncertain demand and turnaround times

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  • Vanga, Ratnaji
  • Venkateswaran, Jayendran

Abstract

Reusable Articles (RAs) are vital for supply chain logistics as they provide for the safe, economical and environmentally friendly movement of products and materials. The existing literature related to RAs has focused on the design aspects, fleet sizing, allocation of RAs, repositioning of empty RAs, and their end-of-life stages. This paper focuses on the fleet-sizing problem of RAs under uncertain demand and turnaround times. Probability theory-based analytical models are developed to determine the optimal fleet size of RAs in both lost-sales and back-order cases. The proposed analytical procedure can be used to develop models to find the optimal fleet sizes for any demand scenario with a known distribution. In the lost-sales case, analytical models are developed for uniform and normally distributed demand scenarios. A simulation model is developed to test the effectiveness of the average on-hand inventory in service-level estimation. Sensitivity analysis of the average on-hand inventory for the changes in demand and turnaround times have also been conducted and the key managerial insights are summarized. Analytical models are also developed for the back-order case and some specific managerial insights are presented.

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  • Vanga, Ratnaji & Venkateswaran, Jayendran, 2020. "Fleet sizing of reusable articles under uncertain demand and turnaround times," European Journal of Operational Research, Elsevier, vol. 285(2), pages 566-582.
    • Handle: RePEc:eee:ejores:v:285:y:2020:i:2:p:566-582
    DOI: 10.1016/j.ejor.2020.02.004
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    3. Levitin, Gregory & Finkelstein, Maxim & Dai, Yuanshun, 2021. "Optimization of cyclic preventive replacement in homogeneous warm-standby system with reusable elements exposed to shocks," Reliability Engineering and System Safety, Elsevier, vol. 207(C).
    4. Levitin, Gregory & Finkelstein, Maxim & Dai, Yuanshun, 2020. "Optimal preventive replacement policy for homogeneous cold standby systems with reusable elements," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    5. Zhang, Abraham & Wang, Jason X. & Farooque, Muhammad & Wang, Yulan & Choi, Tsan-Ming, 2021. "Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 155(C).
    6. Adil Baykasoğlu & Nurhan Dudaklı & Kemal Subulan & A. Serdar Taşan, 2022. "An integrated fleet planning model with empty vehicle repositioning for an intermodal transportation system," Operational Research, Springer, vol. 22(3), pages 2063-2098, July.

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