Inventory reduction in spare part networks by selective throughput time reduction

    Research output: Contribution to journalArticleAcademicpeer-review

    19 Citations (Scopus)

    Abstract

    We consider combined inventory control and throughput time reduction in multi-echelon, multi-indenture spare part networks for system upkeep of capital goods. We construct a model in which standard throughput times (TPTs) for repair and transportation can be reduced at additional costs. We first estimate the marginal impact of TPT reduction on the system availability. Next, we develop an optimization heuristic for the cost trade-off between TPT reduction and spare part inventories. In a case study at Thales Netherlands with limited options for TPT reduction, we find a net saving of 5.6% on spare part inventories. In an extensive numerical experiment, we find a 20% cost reduction on average compared to standard spare part inventory optimization. TPT reductions downstream in the spare part supply chain appear to be the most effective
    Original languageEnglish
    Pages (from-to)509-517
    Number of pages9
    JournalInternational journal of production economics
    Volume143
    Issue number2
    DOIs
    Publication statusPublished - 4 Jan 2013

    Fingerprint

    Throughput
    Inventory control
    Cost reduction
    Supply chains
    Spare parts
    Costs
    Repair
    Availability
    Experiments

    Keywords

    • IR-81458
    • METIS-288109

    Cite this

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    title = "Inventory reduction in spare part networks by selective throughput time reduction",
    abstract = "We consider combined inventory control and throughput time reduction in multi-echelon, multi-indenture spare part networks for system upkeep of capital goods. We construct a model in which standard throughput times (TPTs) for repair and transportation can be reduced at additional costs. We first estimate the marginal impact of TPT reduction on the system availability. Next, we develop an optimization heuristic for the cost trade-off between TPT reduction and spare part inventories. In a case study at Thales Netherlands with limited options for TPT reduction, we find a net saving of 5.6{\%} on spare part inventories. In an extensive numerical experiment, we find a 20{\%} cost reduction on average compared to standard spare part inventory optimization. TPT reductions downstream in the spare part supply chain appear to be the most effective",
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    author = "{van der Heijden}, {Matthijs C.} and Elisa Alvarez and Schutten, {Johannes M.J.}",
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    Inventory reduction in spare part networks by selective throughput time reduction. / van der Heijden, Matthijs C.; Alvarez, Elisa; Schutten, Johannes M.J.

    In: International journal of production economics, Vol. 143, No. 2, 04.01.2013, p. 509-517.

    Research output: Contribution to journalArticleAcademicpeer-review

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    AU - van der Heijden, Matthijs C.

    AU - Alvarez, Elisa

    AU - Schutten, Johannes M.J.

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    AB - We consider combined inventory control and throughput time reduction in multi-echelon, multi-indenture spare part networks for system upkeep of capital goods. We construct a model in which standard throughput times (TPTs) for repair and transportation can be reduced at additional costs. We first estimate the marginal impact of TPT reduction on the system availability. Next, we develop an optimization heuristic for the cost trade-off between TPT reduction and spare part inventories. In a case study at Thales Netherlands with limited options for TPT reduction, we find a net saving of 5.6% on spare part inventories. In an extensive numerical experiment, we find a 20% cost reduction on average compared to standard spare part inventory optimization. TPT reductions downstream in the spare part supply chain appear to be the most effective

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