An approximate approach for the joint problem of level of repair analysis and spare parts stocking

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Abstract

For the spare parts stocking problem, generally METRIC type methods are used in the context of capital goods. A decision is assumed on which components to discard and which to repair upon failure, and where to perform repairs. In the military world, this decision is taken explicitly using the level of repair analysis (LORA). Since the LORA does not consider the availability of the capital goods, solving the LORA and spare parts stocking problems sequentially may lead to suboptimal solutions. Therefore, we propose an iterative algorithm. We compare its performance with that of the sequential approach and a recently proposed, so-called integrated algorithm that finds optimal solutions for twoechelon, single-indenture problems. On a set of such problems, the iterative algorithm turns out to be close to optimal. On a set of multi-echelon, multi-indenture problems, the iterative approach achieves a cost reduction of 3%on average (35%at maximum) as compared to the sequential approach. Its costs are only 0.6 % more than those of the integrated algorithm on average (5 % at maximum). Considering that the integrated algorithm may take a long time without guaranteeing optimality, we believe that the iterative algorithm is a good approach. This result is further strengthened in a case study, which has convinced Thales Nederland to start using the principles behind our algorithm.
Original languageEnglish
Pages (from-to)121-145
Number of pages25
JournalAnnals of operations research
Volume224
Issue number1
DOIs
Publication statusPublished - 24 Jul 2015

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Spare parts
Repair
Integrated
Optimality
Military
Discards
Optimal solution
Costs
Multi-echelon

Keywords

  • METIS-287252
  • IR-80954

Cite this

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title = "An approximate approach for the joint problem of level of repair analysis and spare parts stocking",
abstract = "For the spare parts stocking problem, generally METRIC type methods are used in the context of capital goods. A decision is assumed on which components to discard and which to repair upon failure, and where to perform repairs. In the military world, this decision is taken explicitly using the level of repair analysis (LORA). Since the LORA does not consider the availability of the capital goods, solving the LORA and spare parts stocking problems sequentially may lead to suboptimal solutions. Therefore, we propose an iterative algorithm. We compare its performance with that of the sequential approach and a recently proposed, so-called integrated algorithm that finds optimal solutions for twoechelon, single-indenture problems. On a set of such problems, the iterative algorithm turns out to be close to optimal. On a set of multi-echelon, multi-indenture problems, the iterative approach achieves a cost reduction of 3{\%}on average (35{\%}at maximum) as compared to the sequential approach. Its costs are only 0.6 {\%} more than those of the integrated algorithm on average (5 {\%} at maximum). Considering that the integrated algorithm may take a long time without guaranteeing optimality, we believe that the iterative algorithm is a good approach. This result is further strengthened in a case study, which has convinced Thales Nederland to start using the principles behind our algorithm.",
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An approximate approach for the joint problem of level of repair analysis and spare parts stocking. / Basten, Robertus Johannes Ida; van der Heijden, Matthijs C.; Schutten, Johannes M.J.; Kutanoglu, E.

In: Annals of operations research, Vol. 224, No. 1, 24.07.2015, p. 121-145.

Research output: Contribution to journalArticleAcademicpeer-review

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T1 - An approximate approach for the joint problem of level of repair analysis and spare parts stocking

AU - Basten, Robertus Johannes Ida

AU - van der Heijden, Matthijs C.

AU - Schutten, Johannes M.J.

AU - Kutanoglu, E.

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