IDEAS home Printed from https://ideas.repec.org/a/gam/jmathe/v12y2024i17p2730-d1468774.html
   My bibliography  Save this article

Emergency Supply Alternatives for a Storage Facility of a Repairable Multi-Component System

Author

Listed:
  • Yonit Barron

    (Department of Industrial Engineering and Management, Ariel University, Ariel 40700, Israel)

  • Chananel Benshimol

    (Department of Industrial Engineering and Management, Ariel University, Ariel 40700, Israel)

Abstract

This paper studies a continuous-review stochastic replenishment model for a multi-component system with regular and emergency orders. The system consists of N parallel and independent components, each of which has a finite life span. In addition, there is a warehouse with a limited stock of new components. Each broken component is replaced by a new component from the stock. When no component is available, an emergency supply is ordered. The stock is managed according to an ( ( s , S ) , ( 0 , Q e ) ) policy, which is a combination of an ( s , S ) policy for the regular order and a ( 0 , Q e ) policy for the emergency order. The regular order is delivered after an exponentially distributed lead time, whereas the emergency order is delivered immediately. We study three sub-policies for emergency orders, which differ from each other in size and in relation to the regular order. Applying the results from queueing theory and phase-type properties, we derive the optimal thresholds for each sub-policy and then compare the economic benefit of each one.

Suggested Citation

  • Yonit Barron & Chananel Benshimol, 2024. "Emergency Supply Alternatives for a Storage Facility of a Repairable Multi-Component System," Mathematics, MDPI, vol. 12(17), pages 1-33, August.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:17:p:2730-:d:1468774
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7390/12/17/2730/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7390/12/17/2730/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kouki, Chaaben & Babai, M. Zied & Minner, Stefan, 2018. "On the benefit of dual-sourcing in managing perishable inventory," International Journal of Production Economics, Elsevier, vol. 204(C), pages 1-17.
    2. Barron, Yonit, 2022. "The continuous (S,s,Se) inventory model with dual sourcing and emergency orders," European Journal of Operational Research, Elsevier, vol. 301(1), pages 18-38.
    3. Arie Harel & Jack Clark Francis & Giora Harpaz, 2018. "Alternative utility functions: review, analysis and comparison," Review of Quantitative Finance and Accounting, Springer, vol. 51(3), pages 785-811, October.
    4. van Wingerden, E. & Tan, T. & Van Houtum, G.J., 2019. "The impact of an emergency warehouse in a two-echelon spare parts network," European Journal of Operational Research, Elsevier, vol. 276(3), pages 983-997.
    5. Steven Nahmias, 2011. "Perishable Inventory Systems," International Series in Operations Research and Management Science, Springer, edition 1, number 978-1-4419-7999-5, April.
    6. Jing-Sheng Song & Li Xiao & Hanqin Zhang & Paul Zipkin, 2017. "Optimal Policies for a Dual-Sourcing Inventory Problem with Endogenous Stochastic Lead Times," Operations Research, INFORMS, vol. 65(2), pages 379-395, April.
    7. Ruiz-Castro, Juan Eloy, 2016. "Complex multi-state systems modelled through marked Markovian arrival processes," European Journal of Operational Research, Elsevier, vol. 252(3), pages 852-865.
    8. Turrini, Laura & Meissner, Joern, 2019. "Spare parts inventory management: New evidence from distribution fitting," European Journal of Operational Research, Elsevier, vol. 273(1), pages 118-130.
    9. Gad Allon & Jan A. Van Mieghem, 2010. "Global Dual Sourcing: Tailored Base-Surge Allocation to Near- and Offshore Production," Management Science, INFORMS, vol. 56(1), pages 110-124, January.
    10. Wang, Ling & Chu, Jian & Mao, Weijie, 2009. "A condition-based replacement and spare provisioning policy for deteriorating systems with uncertain deterioration to failure," European Journal of Operational Research, Elsevier, vol. 194(1), pages 184-205, April.
    11. Jing-Sheng Song & Paul Zipkin, 2009. "Inventories with Multiple Supply Sources and Networks of Queues with Overflow Bypasses," Management Science, INFORMS, vol. 55(3), pages 362-372, March.
    12. Barron, Yonit & Frostig, Esther & Levikson, Benny, 2006. "Analysis of R out of N systems with several repairmen, exponential life times and phase type repair times: An algorithmic approach," European Journal of Operational Research, Elsevier, vol. 169(1), pages 202-225, February.
    13. Yonit Barron & Dror Hermel, 2017. "Shortage decision policies for a fluid production model with MAP arrivals," International Journal of Production Research, Taylor & Francis Journals, vol. 55(14), pages 3946-3969, July.
    14. Lap Mui Ann Chan & Ana Muriel & Zuo-Jun Max Shen & David Simchi-Levi & Chung-Piaw Teo, 2002. "Effective Zero-Inventory-Ordering Policies for the Single-Warehouse Multiretailer Problem with Piecewise Linear Cost Structures," Management Science, INFORMS, vol. 48(11), pages 1446-1460, November.
    15. Mario Guajardo & Mikael Rönnqvist & Ann Mari Halvorsen & Svein Inge Kallevik, 2015. "Inventory management of spare parts in an energy company," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 66(2), pages 331-341, February.
    16. Kouki, Chaaben & Jemaï, Zied & Minner, Stefan, 2015. "A lost sales (r, Q) inventory control model for perishables with fixed lifetime and lead time," International Journal of Production Economics, Elsevier, vol. 168(C), pages 143-157.
    17. Rahimi-Ghahroodi, S. & Al Hanbali, A. & Zijm, W.H.M. & Timmer, J.B., 2019. "Emergency supply contracts for a service provider with limited local resources," Reliability Engineering and System Safety, Elsevier, vol. 189(C), pages 445-460.
    18. Kamran Moinzadeh & Charles P. Schmidt, 1991. "An (S − 1, S) Inventory System with Emergency Orders," Operations Research, INFORMS, vol. 39(2), pages 308-321, April.
    19. Yonit Barron, 2018. "Group maintenance policies for an R-out-of-N system with phase-type distribution," Annals of Operations Research, Springer, vol. 261(1), pages 79-105, February.
    20. Mark Goh & Ou Jihong & Teo Chung‐Piaw, 2001. "Warehouse sizing to minimize inventory and storage costs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(4), pages 299-312, June.
    21. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    22. Saeed Poormoaied & Zümbül Atan & Ton de Kok & Tom Van Woensel, 2020. "Optimal inventory and timing decisions for emergency shipments," IISE Transactions, Taylor & Francis Journals, vol. 52(8), pages 904-925, August.
    23. Ming-Jong Yao & Jia-Yen Huang, 2017. "Optimal lot-sizing and joint replenishment strategy under a piecewise linear warehousing cost structure," Journal of Intelligent Manufacturing, Springer, vol. 28(3), pages 791-803, March.
    24. Liangjun Peng & Yawei Liu & Zichen Zou & Linbo Zhang & Vahid Kayvanfar, 2022. "Effects of Supply Reliability, Risk Aversion, and Wealth on Retailer’s Optimal Order Strategy," Mathematical Problems in Engineering, Hindawi, vol. 2022, pages 1-14, November.
    25. Çelik, Melih & Archetti, Claudia & Süral, Haldun, 2022. "Inventory routing in a warehouse: The storage replenishment routing problem," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1117-1132.
    26. Søren Asmussen, 2000. "Matrix‐analytic Models and their Analysis," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 27(2), pages 193-226, June.
    27. Paul Zipkin, 2008. "Old and New Methods for Lost-Sales Inventory Systems," Operations Research, INFORMS, vol. 56(5), pages 1256-1263, October.
    28. Johansson, Lina & Olsson, Fredrik, 2018. "Age-based inventory control in a multi-echelon system with emergency replenishments," European Journal of Operational Research, Elsevier, vol. 265(3), pages 951-961.
    Full references (including those not matched with items on IDEAS)

    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. Barron, Yonit, 2022. "The continuous (S,s,Se) inventory model with dual sourcing and emergency orders," European Journal of Operational Research, Elsevier, vol. 301(1), pages 18-38.
    2. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    3. Chaolin Yang & Diyuan Huang & Chenyang Xu, 2022. "Multi-index base-stock policy for inventory systems with multiple capacitated suppliers," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(1), pages 155-177, March.
    4. Jiankun Sun & Jan A. Van Mieghem, 2019. "Robust Dual Sourcing Inventory Management: Optimality of Capped Dual Index Policies and Smoothing," Manufacturing & Service Operations Management, INFORMS, vol. 21(4), pages 912-931, October.
    5. Hekimoğlu, Mustafa & Scheller-Wolf, Alan, 2023. "Dual sourcing models with stock-out dependent substitution," European Journal of Operational Research, Elsevier, vol. 311(2), pages 472-485.
    6. Kouki, Chaaben & Babai, M. Zied & Minner, Stefan, 2018. "On the benefit of dual-sourcing in managing perishable inventory," International Journal of Production Economics, Elsevier, vol. 204(C), pages 1-17.
    7. N. Knofius & M. C. Heijden & A. Sleptchenko & W. H. M. Zijm, 2021. "Improving effectiveness of spare parts supply by additive manufacturing as dual sourcing option," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(1), pages 189-221, March.
    8. Yonit Barron, 2018. "Group maintenance policies for an R-out-of-N system with phase-type distribution," Annals of Operations Research, Springer, vol. 261(1), pages 79-105, February.
    9. Wu, Hui & Li, Yan-Fu & Bérenguer, Christophe, 2020. "Optimal inspection and maintenance for a repairable k-out-of-n: G warm standby system," Reliability Engineering and System Safety, Elsevier, vol. 193(C).
    10. Kouki, Chaaben & Arts, Joachim & Babai, M. Zied, 2024. "Performance evaluation of a two-echelon inventory system with network lost sales," European Journal of Operational Research, Elsevier, vol. 314(2), pages 647-664.
    11. Yonit Barron & Opher Baron, 2020. "The residual time approach for (Q, r) model under perishability, general lead times, and lost sales," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 92(3), pages 601-648, December.
    12. Eric Logan Huggins & Tava Lennon Olsen, 2010. "Inventory Control with Generalized Expediting," Operations Research, INFORMS, vol. 58(5), pages 1414-1426, October.
    13. Robert N. Boute & Stephen M. Disney & Joren Gijsbrechts & Jan A. Van Mieghem, 2022. "Dual Sourcing and Smoothing Under Nonstationary Demand Time Series: Reshoring with SpeedFactories," Management Science, INFORMS, vol. 68(2), pages 1039-1057, February.
    14. Ehsan Ahmadi & Dale T. Masel & Seth Hostetler & Reza Maihami & Iman Ghalehkhondabi, 2020. "A centralized stochastic inventory control model for perishable products considering age-dependent purchase price and lead time," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 231-269, April.
    15. Sean X. Zhou & Chaolin Yang, 2016. "Continuous-Review ( R, nQ ) Policies for Inventory Systems with Dual Delivery Modes," Operations Research, INFORMS, vol. 64(6), pages 1302-1319, December.
    16. Lucas Böttcher & Thomas Asikis & Ioannis Fragkos, 2023. "Control of Dual-Sourcing Inventory Systems Using Recurrent Neural Networks," INFORMS Journal on Computing, INFORMS, vol. 35(6), pages 1308-1328, November.
    17. Jing-Sheng Song & Li Xiao & Hanqin Zhang & Paul Zipkin, 2017. "Optimal Policies for a Dual-Sourcing Inventory Problem with Endogenous Stochastic Lead Times," Operations Research, INFORMS, vol. 65(2), pages 379-395, April.
    18. Ruiz-Castro, Juan Eloy, 2020. "A complex multi-state k-out-of-n: G system with preventive maintenance and loss of units," Reliability Engineering and System Safety, Elsevier, vol. 197(C).
    19. Kouki, Chaaben & Legros, Benjamin & Zied Babai, M. & Jouini, Oualid, 2020. "Analysis of base-stock perishable inventory systems with general lifetime and lead-time," European Journal of Operational Research, Elsevier, vol. 287(3), pages 901-915.
    20. Younes Hamdouch & Youssef Boulaksil & Kilani Ghoudi, 2023. "Dual sourcing inventory management with nonconsecutive lead times from a supply chain perspective: a numerical study," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 45(3), pages 1013-1041, September.

    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:gam:jmathe:v:12:y:2024:i:17:p:2730-:d:1468774. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.