IDEAS home Printed from https://ideas.repec.org/a/eee/reensy/v119y2013icp95-101.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0951832013001312
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ress.2013.05.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Craig C. Sherbrooke, 1968. "Metric: A Multi-Echelon Technique for Recoverable Item Control," Operations Research, INFORMS, vol. 16(1), pages 122-141, February.
    2. Lau, Hoong Chuin & Song, Huawei & See, Chuen Teck & Cheng, Siew Yen, 2006. "Evaluation of time-varying availability in multi-echelon spare parts systems with passivation," European Journal of Operational Research, Elsevier, vol. 170(1), pages 91-105, April.
    3. H Wong & G J van Houtum & D Cattrysse & D Van Oudheusden, 2005. "Simple, efficient heuristics for multi-item multi-location spare parts systems with lateral transshipments and waiting time constraints," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(12), pages 1419-1430, December.
    4. Stephen C. Graves, 1985. "A Multi-Echelon Inventory Model for a Repairable Item with One-for-One Replenishment," Management Science, INFORMS, vol. 31(10), pages 1247-1256, October.
    5. John A. Muckstadt, 1973. "A Model for a Multi-Item, Multi-Echelon, Multi-Indenture Inventory System," Management Science, INFORMS, vol. 20(4-Part-I), pages 472-481, December.
    6. Nowicki, David R. & Randall, Wesley S. & Ramirez-Marquez, Jose Emmanuel, 2012. "Improving the computational efficiency of metric-based spares algorithms," European Journal of Operational Research, Elsevier, vol. 219(2), pages 324-334.
    7. A Sleptchenko & M C van der Heijden & A van Harten, 2003. "Trade-off between inventory and repair capacity in spare part networks," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(3), pages 263-272, March.
    8. 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.
    9. Yunzeng Wang & Morris A. Cohen & Yu-Sheng Zheng, 2000. "A Two-Echelon Repairable Inventory System with Stocking-Center-Dependent Depot Replenishment Lead Times," Management Science, INFORMS, vol. 46(11), pages 1441-1453, November.
    10. Craig C. Sherbrooke, 1986. "VARI-METRIC : Improved Approximations for Multi-Indenture, Multi-Echelon Availability Models," Operations Research, INFORMS, vol. 34(2), pages 311-319, April.
    11. Kathryn E. Caggiano & Peter L. Jackson & John A. Muckstadt & James A. Rappold, 2007. "Optimizing Service Parts Inventory in a Multiechelon, Multi-Item Supply Chain with Time-Based Customer Service-Level Agreements," Operations Research, INFORMS, vol. 55(2), pages 303-318, April.
    12. Gupta, Amit & Albright, S. Christian, 1992. "Steady-state approximations for a multi-echelon multi-indentured repairable-item inventory system," European Journal of Operational Research, Elsevier, vol. 62(3), pages 340-353, November.
    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. 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.

    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. de Kok, Ton & Grob, Christopher & Laumanns, Marco & Minner, Stefan & Rambau, Jörg & Schade, Konrad, 2018. "A typology and literature review on stochastic multi-echelon inventory models," European Journal of Operational Research, Elsevier, vol. 269(3), pages 955-983.
    2. 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).
    3. Tsai, Shing Chih & Zheng, Ya-Xin, 2013. "A simulation optimization approach for a two-echelon inventory system with service level constraints," European Journal of Operational Research, Elsevier, vol. 229(2), pages 364-374.
    4. Qin, Xuwei & Jiang, Zhong-Zhong & Sun, Minghe & Tang, Liang & Liu, Xiaoran, 2021. "Repairable spare parts provisioning for multiregional expanding fleets of equipment under performance-based contracting," Omega, Elsevier, vol. 102(C).
    5. Guide, V. Daniel R. & Srivastava, Rajesh, 1997. "Repairable inventory theory: Models and applications," European Journal of Operational Research, Elsevier, vol. 102(1), pages 1-20, October.
    6. Fritzsche, R., 2012. "Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1065-1079.
    7. Knofius, N. & van der Heijden, M.C. & Zijm, W.H.M., 2019. "Consolidating spare parts for asset maintenance with additive manufacturing," International Journal of Production Economics, Elsevier, vol. 208(C), pages 269-280.
    8. R. Basten & M. Heijden & J. Schutten & E. Kutanoglu, 2015. "An approximate approach for the joint problem of level of repair analysis and spare parts stocking," Annals of Operations Research, Springer, vol. 224(1), pages 121-145, January.
    9. 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.
    10. Mirzahosseinian, H. & Piplani, R., 2011. "A study of repairable parts inventory system operating under performance-based contract," European Journal of Operational Research, Elsevier, vol. 214(2), pages 256-261, October.
    11. Nowicki, David R. & Randall, Wesley S. & Ramirez-Marquez, Jose Emmanuel, 2012. "Improving the computational efficiency of metric-based spares algorithms," European Journal of Operational Research, Elsevier, vol. 219(2), pages 324-334.
    12. Qin, Xuwei & Shao, Lusheng & Jiang, Zhong-Zhong, 2020. "Contract design for equipment after-sales service with business interruption insurance," European Journal of Operational Research, Elsevier, vol. 284(1), pages 176-187.
    13. Sheikh-Zadeh, Alireza & Rossetti, Manuel D. & Scott, Marc A., 2021. "Performance-based inventory classification methods for large-Scale multi-echelon replenishment systems," Omega, Elsevier, vol. 101(C).
    14. Izack Cohen & Morris A. Cohen & Elad Landau, 2017. "On sourcing and stocking policies in a two-echelon, multiple location, repairable parts supply chain," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(6), pages 617-629, June.
    15. 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.
    16. Diks, E. B. & de Kok, A. G. & Lagodimos, A. G., 1996. "Multi-echelon systems: A service measure perspective," European Journal of Operational Research, Elsevier, vol. 95(2), pages 241-263, December.
    17. 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.
    18. García-Benito, Juan Carlos & Martín-Peña, María-Luz, 2021. "A redistribution model with minimum backorders of spare parts: A proposal for the defence sector," European Journal of Operational Research, Elsevier, vol. 291(1), pages 178-193.
    19. Markus Ettl & Gerald E. Feigin & Grace Y. Lin & David D. Yao, 2000. "A Supply Network Model with Base-Stock Control and Service Requirements," Operations Research, INFORMS, vol. 48(2), pages 216-232, April.
    20. Hur, Mansik & Keskin, Burcu B. & Schmidt, Charles P., 2018. "End-of-life inventory control of aircraft spare parts under performance based logistics," International Journal of Production Economics, Elsevier, vol. 204(C), pages 186-203.

    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:reensy:v:119:y:2013:i:c:p:95-101. 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: https://www.journals.elsevier.com/reliability-engineering-and-system-safety .

    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.