IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v132y2011i1p43-51.html
   My bibliography  Save this article

A network approach to modeling the multi-echelon spare-part inventory system with backorders and interval-valued demand

Author

Listed:
  • Levner, Eugene
  • Perlman, Yael
  • Cheng, T.C.E.
  • Levner, Ilya

Abstract

A multi-echelon inventory system implies the existence of a hierarchy of stocking locations, and the dependence and interaction between them. We consider a multi-echelon, spare-part inventory management problem with outsourcing and backordering. The problem is characterized by deterministic repair time/cost, and supply and demand that lie within prescribed intervals and that vary over time. The objective is to minimize the total inventory and transportation costs. We develop a network model for problem analysis and present a network flow algorithm for solving the problem. We prove that the Wagner-Whitin property, known for the lot-sizing problem, can be extended to the spare-part inventory management problem under study.

Suggested Citation

  • Levner, Eugene & Perlman, Yael & Cheng, T.C.E. & Levner, Ilya, 2011. "A network approach to modeling the multi-echelon spare-part inventory system with backorders and interval-valued demand," International Journal of Production Economics, Elsevier, vol. 132(1), pages 43-51, July.
    • Handle: RePEc:eee:proeco:v:132:y:2011:i:1:p:43-51
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925-5273(11)00125-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Minner, Stefan, 2003. "Multiple-supplier inventory models in supply chain management: A review," International Journal of Production Economics, Elsevier, vol. 81(1), pages 265-279, January.
    2. Liberopoulos, George & Tsikis, Isidoros & Delikouras, Stefanos, 2010. "Backorder penalty cost coefficient "b": What could it be?," International Journal of Production Economics, Elsevier, vol. 123(1), pages 166-178, January.
    3. Abdul-Jalbar, Beatriz & Gutiérrez, Jose M. & Sicilia, Joaquín, 2006. "Single cycle policies for the one-warehouse N-retailer inventory/distribution system," Omega, Elsevier, vol. 34(2), pages 196-208, April.
    4. Y Perlman & M Kaspi, 2007. "Centralized decision of internal transfer-prices with congestion externalities for two modes of repair with limited repair capacity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(9), pages 1178-1184, September.
    5. Warren H. Hausman & Gary D. Scudder, 1982. "Priority Scheduling Rules for Repairable Inventory Systems," Management Science, INFORMS, vol. 28(11), pages 1215-1232, November.
    6. Awi Federgruen & Joern Meissner & Michal Tzur, 2007. "Progressive Interval Heuristics for Multi-Item Capacitated Lot-Sizing Problems," Operations Research, INFORMS, vol. 55(3), pages 490-502, June.
    7. Kennedy, W. J. & Wayne Patterson, J. & Fredendall, Lawrence D., 2002. "An overview of recent literature on spare parts inventories," International Journal of Production Economics, Elsevier, vol. 76(2), pages 201-215, March.
    8. Harvey M. Wagner & Thomson M. Whitin, 1958. "Dynamic Version of the Economic Lot Size Model," Management Science, INFORMS, vol. 5(1), pages 89-96, October.
    9. Huiskonen, Janne, 2001. "Maintenance spare parts logistics: Special characteristics and strategic choices," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 125-133, May.
    10. I. J. B. F. Adan & A. Sleptchenko & G. J. Van Houtum, 2009. "Reducing Costs Of Spare Parts Supply Systems Via Static Priorities," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 26(04), pages 559-585.
    11. Sleptchenko, A. & van der Heijden, M. C. & van Harten, A., 2002. "Effects of finite repair capacity in multi-echelon, multi-indenture service part supply systems," International Journal of Production Economics, Elsevier, vol. 79(3), pages 209-230, October.
    12. William Prager, 1956. "On the Caterer Problem," Management Science, INFORMS, vol. 3(1), pages 15-23, October.
    13. Willard I. Zangwill, 1969. "A Backlogging Model and a Multi-Echelon Model of a Dynamic Economic Lot Size Production System--A Network Approach," Management Science, INFORMS, vol. 15(9), pages 506-527, May.
    14. Sleptchenko, A. & van der Heijden, M. C. & van Harten, A., 2005. "Using repair priorities to reduce stock investment in spare part networks," European Journal of Operational Research, Elsevier, vol. 163(3), pages 733-750, June.
    15. Y Perlman & A Mehrez & M Kaspi, 2001. "Setting expediting repair policy in a multi-echelon repairable-item inventory system with limited repair capacity," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(2), pages 198-209, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu-kun Chen & Qi Gao & Xiao-bo Su & Shun Fang & Chi-ming Guo, 2018. "Research on optimization of spare parts inventory policy considering maintenance priority," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 9(6), pages 1336-1345, December.
    2. Parvaneh Samouei & Amir Kheirkhah & Parviz Fattahi, 2015. "A network approach modeling of multi-echelon spare-part inventory system with backorders and quantity discount," Annals of Operations Research, Springer, vol. 226(1), pages 551-563, March.
    3. Jan Block & Alireza Ahmadi & Xun Xiao & Uday Kumar, 2019. "Spares provisioning strategy for periodically replaced units within the fleet retirement period," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(3), pages 299-315, June.
    4. Wang, Gang & Lei, Lei, 2012. "Polynomial-time solvable cases of the capacitated multi-echelon shipping network scheduling problem with delivery deadlines," International Journal of Production Economics, Elsevier, vol. 137(2), pages 263-271.
    5. Driessen, M.A. & van Houtum, G.J. & Zijm, W.H.M. & Rustenburg, W.D., 2020. "Capacity assignment in repair shops with high material uncertainty," International Journal of Production Economics, Elsevier, vol. 221(C).
    6. Wang, Naichao & Li, Mingyuan & Xiao, Boping & Ma, Lin, 2019. "Availability analysis of a general time distribution system with the consideration of maintenance and spares," Reliability Engineering and System Safety, Elsevier, vol. 192(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van der Heijden, M.C. & Alvarez, E.M. & Schutten, J.M.J., 2013. "Inventory reduction in spare part networks by selective throughput time reduction," International Journal of Production Economics, Elsevier, vol. 143(2), pages 509-517.
    2. Arts, Joachim, 2017. "A multi-item approach to repairable stocking and expediting in a fluctuating demand environment," European Journal of Operational Research, Elsevier, vol. 256(1), pages 102-115.
    3. Turan, Hasan Hüseyin & Atmis, Mahir & Kosanoglu, Fuat & Elsawah, Sondoss & Ryan, Michael J., 2020. "A risk-averse simulation-based approach for a joint optimization of workforce capacity, spare part stocks and scheduling priorities in maintenance planning," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    4. Sleptchenko, A. & van der Heijden, M. C. & van Harten, A., 2005. "Using repair priorities to reduce stock investment in spare part networks," European Journal of Operational Research, Elsevier, vol. 163(3), pages 733-750, June.
    5. Tiemessen, H.G.H. & van Houtum, G.J., 2013. "Reducing costs of repairable inventory supply systems via dynamic scheduling," International Journal of Production Economics, Elsevier, vol. 143(2), pages 478-488.
    6. Hu, Qiwei & Boylan, John E. & Chen, Huijing & Labib, Ashraf, 2018. "OR in spare parts management: A review," European Journal of Operational Research, Elsevier, vol. 266(2), pages 395-414.
    7. Driessen, M.A. & van Houtum, G.J. & Zijm, W.H.M. & Rustenburg, W.D., 2020. "Capacity assignment in repair shops with high material uncertainty," International Journal of Production Economics, Elsevier, vol. 221(C).
    8. Kerem Akartunalı & Ioannis Fragkos & Andrew J. Miller & Tao Wu, 2016. "Local Cuts and Two-Period Convex Hull Closures for Big-Bucket Lot-Sizing Problems," INFORMS Journal on Computing, INFORMS, vol. 28(4), pages 766-780, November.
    9. Brahimi, Nadjib & Absi, Nabil & Dauzère-Pérès, Stéphane & Nordli, Atle, 2017. "Single-item dynamic lot-sizing problems: An updated survey," European Journal of Operational Research, Elsevier, vol. 263(3), pages 838-863.
    10. Parvaneh Samouei & Amir Kheirkhah & Parviz Fattahi, 2015. "A network approach modeling of multi-echelon spare-part inventory system with backorders and quantity discount," Annals of Operations Research, Springer, vol. 226(1), pages 551-563, March.
    11. Topan, E. & Eruguz, A.S. & Ma, W. & van der Heijden, M.C. & Dekker, R., 2020. "A review of operational spare parts service logistics in service control towers," European Journal of Operational Research, Elsevier, vol. 282(2), pages 401-414.
    12. Sleptchenko, Andrei & Turan, Hasan Hüseyin & Pokharel, Shaligram & ElMekkawy, Tarek Y., 2019. "Cross-training policies for repair shops with spare part inventories," International Journal of Production Economics, Elsevier, vol. 209(C), pages 334-345.
    13. Kerem Akartunalı & Andrew Miller, 2012. "A computational analysis of lower bounds for big bucket production planning problems," Computational Optimization and Applications, Springer, vol. 53(3), pages 729-753, December.
    14. Siao-Leu Phouratsamay & Safia Kedad-Sidhoum & Fanny Pascual, 2021. "Coordination of a two-level supply chain with contracts," 4OR, Springer, vol. 19(2), pages 235-264, June.
    15. Dombi, József & Jónás, Tamás & Tóth, Zsuzsanna Eszter, 2018. "Modeling and long-term forecasting demand in spare parts logistics businesses," International Journal of Production Economics, Elsevier, vol. 201(C), pages 1-17.
    16. Ming Zhao & Minjiao Zhang, 2020. "Multiechelon Lot Sizing: New Complexities and Inequalities," Operations Research, INFORMS, vol. 68(2), pages 534-551, March.
    17. Jenny Carolina Saldana Cortés, 2011. "Programación semidefinida aplicada a problemas de cantidad económica de pedido," Documentos CEDE 8735, Universidad de los Andes, Facultad de Economía, CEDE.
    18. Stan van Hoesel & H. Edwin Romeijn & Dolores Romero Morales & Albert P. M. Wagelmans, 2005. "Integrated Lot Sizing in Serial Supply Chains with Production Capacities," Management Science, INFORMS, vol. 51(11), pages 1706-1719, November.
    19. Juha Lukkarinen & Jukka Majava, 2020. "Supplies Inventory Management in a Corporation Context: A Case Study," International Journal of Management, Knowledge and Learning, International School for Social and Business Studies, Celje, Slovenia, vol. 9(2), pages 169-184.
    20. Van der Auweraer, Sarah & Boute, Robert N. & Syntetos, Aris A., 2019. "Forecasting spare part demand with installed base information: A review," International Journal of Forecasting, Elsevier, vol. 35(1), pages 181-196.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:132:y:2011:i:1:p:43-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.