Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 58, Issue 17, Pages 5299-5319Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2020.1720924
Keywords
spare parts; supply chain network design; network optimisation; inventory location problems; Generalised Benders Decomposition
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Funding
- EU [645733-Sustain-Owner- H2020-MSCA-RISE-2014]
- Vicerrectoria de Investigacion y Estudios Avanzados, Pontificia Universidad Catolica de Valparaiso, through the Project Postdoctorado DI 2019 [37.0/2019]
- Portsmouth Business School at the University of Portsmouth
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Spare parts are key operational assets in order to minimise unexpected equipment downtimes that may significantly impact a company's results. The spare parts supply chain network supports the entire spare parts operations management and it is essential to achieve the planned goals. However, most of the traditional literature on spare parts management has not focused on the underlying supply chain network. Thus, this paper studies the integration of supply chain network design and control with traditional spare parts management. In particular, a generic network optimisation modelling structure is proposed, with simultaneous optimisation of warehouse locations and inventory control decisions, allowing minimising the total costs associated with the spare parts supply chain network. The generic model is specified based on three inventory control policies widely employed in the industry, which are suitable for managing a great variety of spare parts, i.e. (s, Q), (R, s, S) and (S-1, S). Furthermore, a solution approach is proposed based on Generalised Benders Decomposition. Finally, numerical results from a real-world application case in the process industry are shown and discussed.
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