Using repair priorities to reduce stock investment in spare part networks |
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| Institution: | 1. Laboratoire G-SCOP, 46, avenue Félix Viallet, 38031 Grenoble Cedex 1, France;2. INRIA Grenoble Rhône-Alpes, 655 Avenue de l’Europe, 38330 Montbonnot-Saint-Martin, France;3. Université de Lorraine, laboratoire LGIPM, Ile du Saulcy, 57045 Metz Cedex 01, France;1. Industrial Engineering and Innovation Sciences, Eindhoven University of Technology, 5600 MB Eindhoven, The Netherlands;2. Industrial Engineering, Middle East Technical University, 06800 Çankaya, Ankara, Turkey;1. Department of Industrial & System Engineering, College of Engineering, Khalifa University of Science and Technology, P.O.Box 127788 Abu Dhabi, United Arab Emirates;2. Systems Engineering Department, College of Computer Sciences & Engineering, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia;3. Department of Industrial Engineering and Business Information Systems, Faculty of Behavioural, Management and Social sciences, University of Twente, P.O. Box 217, Enschede, 7500 AE, The Netherlands;1. College of Business and Economics, United Arab Emirates University, Al Ain, Abu-Dhabi, United Arab Emirates;2. Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam 3062 PA, Netherlands;3. Department of Industrial Management and Logistics, Lund University, Lund S-221 00, Sweden |
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| Abstract: | In this paper, we examine the impact of repair priorities in spare part networks. Several heuristics for assigning priorities to items as well as optimising stock levels are developed, extending the well-known VARI-METRIC method. We model repair shops by multi-class, multi-server priority queues. A proper priority setting may lead to a significant reduction in the inventory investment required to attain a target system availability (usually 10–20%). The saving opportunities are particularly high if the utilisation of the repair shops is high and if the item types sharing the same repair shop have clearly different characteristics (price, repair time). For example, we find an investment reduction of 73% for a system with single server repair shops with an utilisation of 0.90 that handle five different item types. |
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