Primary product standardization in spare parts management

Inventory management in a multi-echelon spare parts supply chain

In many industrial sectors, firms are dealing with a demand which is more and more uncertain often due to the supply chain structure. One of the most critical effects of demand uncertainty is the simultaneous increase of inventories and decrease of customer service. This work describes an integrated system for managing inventories in a multi-echelon spare parts supply chain, in which customers ...

Inventory management of spare parts in an energy company

We address a problem of inventory management of spare parts in the context of a large energy company, producer of oil and gas. Spare parts are critical for assuring operational conditions in offshore platforms. About 200,000 different items are held in several inventory plants. The inventory system implemented at the company corresponds to a min-max system. The control parameters are decided ba...

On spare parts optimization

In the book “Optimal inventory modeling of systems: multi-echelon techniques” the author Craig Sherbrooke, who has developed several important model in this area, describes a part of the model cosidered in this manuscript as follows (in “aircraft language”): “When a malfunction is diagnosed on an aircraft, the malfuncioning item is removed from the aircraft and brought into base supply. If a sp...

Driving Aftermarket Value: Upgrade Spare Parts Supply Chain Deloitte China Auto Industry Spare Parts Management Benchmark Survey White Paper

Approximate dynamic programming for management of high-value spare parts

Purpose – An aircraft manufacturer faces the problem of allocating inventory to a set of distributed warehouses in response to random, nonstationary demands. There is particular interest in managing high value, low volume spare parts which must be available to respond to low-frequency demands in the form of random failures of major components. The aircraft fleet is young and in expansion. In ad...