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The effects of resupply flexibility on the design of service parts supply systems

Author

Listed:
  • Van Utterbeeck, Filip
  • Wong, Hartanto
  • Van Oudheusden, Dirk
  • Cattrysse, Dirk

Abstract

We apply simulation optimization to determine the optimal design and stock distribution for a single item supply system with a one-for-one replenishment policy. We investigate both the effect of the number of echelons and the degree of resupply flexibility, considering single-echelon and two-echelon systems with either no resupply flexibility, lateral transhipments only or both lateral transhipments and emergency deliveries. We show that the implementation of an emergency delivery option allows an augmentation of the fraction of customers served by lateral transhipments and that increased resupply flexibility enables increasingly important cost savings.

Suggested Citation

  • Van Utterbeeck, Filip & Wong, Hartanto & Van Oudheusden, Dirk & Cattrysse, Dirk, 2009. "The effects of resupply flexibility on the design of service parts supply systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(1), pages 72-85, January.
    • Handle: RePEc:eee:transe:v:45:y:2009:i:1:p:72-85
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    Citations

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    Cited by:

    1. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    2. 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.
    3. Alvarez, E.M. & van der Heijden, M.C. & Zijm, W.H.M., 2013. "The selective use of emergency shipments for service-contract differentiation," International Journal of Production Economics, Elsevier, vol. 143(2), pages 518-526.
    4. Avci, Mualla Gonca & Selim, Hasan, 2018. "A multi-objective simulation-based optimization approach for inventory replenishment problem with premium freights in convergent supply chains," Omega, Elsevier, vol. 80(C), pages 153-165.
    5. 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.
    6. Somarin, Aghil Rezaei & Sharma, Pankaj & Tiwari, Sunil & Chen, Songlin, 2023. "Stock reallocation policy for repairable service parts in case of supply disruptions due to extreme weather events," International Journal of Production Economics, Elsevier, vol. 256(C).

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