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Optimal repairable spare-parts procurement policy under total business volume discount environment

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  • Pascual, Rodrigo
  • Santelices, Gabriel
  • Lüer-Villagra, Armin
  • Vera, Jorge
  • Cawley, Alejandro Mac

Abstract

In asset intensive fields, where components are expensive and high system availability is required, spare parts procurement is often a critical issue. To gain competitiveness and market share is common for vendors to offer Total Business Volume Discounts (TBVD). Accordingly, companies must define the procurement and stocking policy of their spare parts in order to reduce procurement costs and increase asset availability. In response to those needs, this work presents an optimization model that maximizes the availability of the equipment under a TBVD environment, subject to a budget constraint. The model uses a single-echelon structure where parts can be repaired. It determines the optimal number of repairable spare parts to be stocked, giving emphasis on asset availability, procurement costs and service levels as the main decision criteria. A heuristic procedure that achieves high quality solutions in a fast and time-consistent way was implemented to improve the time required to obtain the model solution. Results show that using an optimal procurement policy of spare parts and accounting for TBVD produces better overall results and yields a better availability performance.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:reensy:v:159:y:2017:i:c:p:276-282
    DOI: 10.1016/j.ress.2016.10.034
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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).
    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).

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