An iterative method for the simultaneous optimization of repair decisions and spare parts stocks

Research output: Working paper

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Abstract

In the development process of a capital good, it should be decided how to maintain it once it is in the field. The level of repair analysis (LORA) is used to answer the questions: 1) which components to repair upon failure, and which to discard, 2) at which locations in the repair network to perform the repairs, and 3) at which locations to deploy resources, such as repair equipment. Next, it should be decided what amount of spare parts to store at each location in the network in order to guarantee a certain availability of the product. Usually, the LORA and the spare parts stocking problem are solved sequentially. However, solving the LORA first can lead to high spare parts costs. Therefore, we propose an iterative approach to solve the two problems jointly. We find that the total costs are lowered with 3.2% on average and almost 35% at maximum in our experiments. A cost reduction of a few percent may be worth hundreds of thousands of euros over the life cycle of a capital good.
Original languageEnglish
Place of PublicationEnschede
PublisherUniversity of Twente, Research School for Operations Management and Logistics (BETA)
Number of pages21
ISBN (Print)9789038621135
Publication statusPublished - 2009

Publication series

NameBETA Working Paper
PublisherBeta Research School for Operations Management and Logistics, University of Twente
No.295

Fingerprint

Iterative methods
Repair
Cost reduction
Costs
Life cycle
Availability
Experiments

Keywords

  • IR-70208
  • Spare parts
  • METIS-259597
  • Inventories
  • Level of repair analysis
  • Service Logistics

Cite this

Basten, R. J. I., van der Heijden, M. C., & Schutten, J. M. J. (2009). An iterative method for the simultaneous optimization of repair decisions and spare parts stocks. (BETA Working Paper; No. 295). Enschede: University of Twente, Research School for Operations Management and Logistics (BETA).
Basten, R.J.I. ; van der Heijden, M.C. ; Schutten, J.M.J. / An iterative method for the simultaneous optimization of repair decisions and spare parts stocks. Enschede : University of Twente, Research School for Operations Management and Logistics (BETA), 2009. (BETA Working Paper; 295).
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Basten, RJI, van der Heijden, MC & Schutten, JMJ 2009 'An iterative method for the simultaneous optimization of repair decisions and spare parts stocks' BETA Working Paper, no. 295, University of Twente, Research School for Operations Management and Logistics (BETA), Enschede.

An iterative method for the simultaneous optimization of repair decisions and spare parts stocks. / Basten, R.J.I.; van der Heijden, M.C.; Schutten, J.M.J.

Enschede : University of Twente, Research School for Operations Management and Logistics (BETA), 2009. (BETA Working Paper; No. 295).

Research output: Working paper

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Basten RJI, van der Heijden MC, Schutten JMJ. An iterative method for the simultaneous optimization of repair decisions and spare parts stocks. Enschede: University of Twente, Research School for Operations Management and Logistics (BETA). 2009. (BETA Working Paper; 295).