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An EOQ-Based Spare Parts Network Design

In: Handbook of EOQ Inventory Problems

Author

Listed:
  • Brecht Landrieux

    (Katholieke Universiteit Leuven
    Katholieke Universiteit Leuven Campus Kortrijk)

  • Nico Vandaele

    (Katholieke Universiteit Leuven
    Katholieke Universiteit Leuven Campus Kortrijk)

Abstract

The aim of this chapter is to combine two types of problems: a facility location problem, that determines where a facility should be set up in order to serve a set of customers, and a EOQ-based spare parts inventory problem, which seeks to determine the optimal stocking levels of a collection of spare parts. The theoretical findings are practiced on a case for projectors of a Belgian Digital Cinema Projector producer, serving customers located all over the world. The goal is to minimize the total costs under four scenarios, which differ mainly in terms of SLA’s and modes of transport. The most remarkable difference between these total costs is related to the number of opened facilities, the safety stock that is required, and the transportation modes that can be used in the considered scenario.

Suggested Citation

  • Brecht Landrieux & Nico Vandaele, 2014. "An EOQ-Based Spare Parts Network Design," International Series in Operations Research & Management Science, in: Tsan-Ming Choi (ed.), Handbook of EOQ Inventory Problems, edition 127, pages 157-177, Springer.
    • Handle: RePEc:spr:isochp:978-1-4614-7639-9_8
    DOI: 10.1007/978-1-4614-7639-9_8
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