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Multi-echelon, multi-indenture spare parts inventory control subject to system availability and budget constraints

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  • Costantino, Francesco
  • Di Gravio, Giulio
  • Tronci, Massimo

Abstract

Inventory management of spare parts is one of the most critical issues in the aeronautical industry, given the required level of system availability related to the strategic importance and high stocking costs of the components. Even if a large number of spare parts increases warehousing costs, every single shortage have a greater impact: the adoption of best-in-class inventory management techniques becomes crucial. On these considerations, the paper presents an innovative model of spare parts allocation for the Italian Air Force with the aim of minimizing backorders and, at the same time, ensuring an availability of 99% depending on the actual flight plan. The model, solved by a marginal analysis, considers an original configuration of features combining different skills of maintenance centers in a hierarchical multi-echelon, multi-item, multi-indenture structure. A real case is provided in order to analyze the solving method and the results.

Suggested Citation

  • Costantino, Francesco & Di Gravio, Giulio & Tronci, Massimo, 2013. "Multi-echelon, multi-indenture spare parts inventory control subject to system availability and budget constraints," Reliability Engineering and System Safety, Elsevier, vol. 119(C), pages 95-101.
    • Handle: RePEc:eee:reensy:v:119:y:2013:i:c:p:95-101
    DOI: 10.1016/j.ress.2013.05.006
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    References listed on IDEAS

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    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. Yazdekhasti, Amin & sharifzadeh, Shila & Ma, Junfeng, 2022. "A two-echelon two-indenture warranty distribution network development and optimization under batch-ordering inventory policy," International Journal of Production Economics, Elsevier, vol. 249(C).
    3. 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.
    4. Michael Dreyfuss & Alan Stulman, 2018. "Waiting time distribution for an exchangeable item repair system with up to two failed components," Annals of Operations Research, Springer, vol. 261(1), pages 167-184, February.
    5. Ito, Kodo & Mizutani, Satoshi & Nakagawa, Toshio, 2020. "Optimal inspection models with minimal repair," Reliability Engineering and System Safety, Elsevier, vol. 201(C).
    6. Sleptchenko, Andrei & van der Heijden, Matthieu, 2016. "Joint optimization of redundancy level and spare part inventories," Reliability Engineering and System Safety, Elsevier, vol. 153(C), pages 64-74.
    7. Pascual, Rodrigo & Santelices, Gabriel & Lüer-Villagra, Armin & Vera, Jorge & Cawley, Alejandro Mac, 2017. "Optimal repairable spare-parts procurement policy under total business volume discount environment," Reliability Engineering and System Safety, Elsevier, vol. 159(C), pages 276-282.
    8. Amin Yazdekhasti & Yahia Zare Mehrjardi, 2020. "Two-echelon three-indenture warranty distribution network: a hybrid branch and bound, Monte-Carlo approach," Operational Research, Springer, vol. 20(2), pages 1113-1158, June.
    9. 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).
    10. Patriarca, Riccardo & Costantino, Francesco & Di Gravio, Giulio & Tronci, Massimo, 2016. "Inventory optimization for a customer airline in a Performance Based Contract," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 206-216.
    11. Yongquan, Sun & Xi, Chen & He, Ren & Yingchao, Jin & Quanwu, Liu, 2016. "Ordering decision-making methods on spare parts for a new aircraft fleet based on a two-sample prediction," Reliability Engineering and System Safety, Elsevier, vol. 156(C), pages 40-50.
    12. Costantino, Francesco & Di Gravio, Giulio & Patriarca, Riccardo & Petrella, Lea, 2018. "Spare parts management for irregular demand items," Omega, Elsevier, vol. 81(C), pages 57-66.
    13. Riccardo Patriarca & Tianya Hu & Francesco Costantino & Giulio Di Gravio & Massimo Tronci, 2019. "A System-Approach for Recoverable Spare Parts Management Using the Discrete Weibull Distribution," Sustainability, MDPI, vol. 11(19), pages 1-15, September.
    14. Huaxiao Shen & Tian Tian & Han Zhu, 2019. "A Two-Echelon Inventory System with a Minimum Order Quantity Requirement," Sustainability, MDPI, vol. 11(18), pages 1-22, September.
    15. Sheikh-Zadeh, Alireza & Rossetti, Manuel D., 2020. "Classification methods for problem size reduction in spare part provisioning," International Journal of Production Economics, Elsevier, vol. 219(C), pages 99-114.

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