REDUCING COSTS OF SPARE PARTS SUPPLY SYSTEMS VIA STATIC PRIORITIES

Reducing Costs of Spare Parts Supply Systems via Static Priorities

We study static repair priorities in a system consisting of one repair shop and one stockpoint, where spare parts of multiple repairables are kept on stock to serve an installed base of technical systems. Demands for ready-for-use parts occur according to Poisson processes, and are accompanied by returns of failed parts. The demands are met from stock if possible, and otherwise they are backord...

Design of BOM configuration for reducing spare parts logistic costs

Design of BOM configuration for reducing spare parts logistic costs Muh-Cherng Wu and Yang-Kang Hsu Department of Industrial Engineering and Management, National Chiao Tung University, Hsin-Chu, Taiwan, ROC Abstract This paper proposes an approach to reduce the total operational cost of a spare part logistic system by appropriately designing the BOM (bill of material) configuration. A spare par...

Condition based spare parts supply

We consider a spare parts stock point that serves an installed base of machines. Each machine contains the same critical component, whose degradation behavior is described by a Markov process. We consider condition based spare parts supply, and show that an optimal, condition based inventory policy is 20% more efficient on average than a standard, state-independent base stock policy. We further...

Improving Air Force Purchasing and Supply Management of Spare Parts

This document was submitted as a dissertation in August 2003 in partial fulfillment of the requirements of the doctoral degree in public policy analysis at the RAND Graduate School. The faculty committee that supervised and approved the dissertation consisted of The RAND Graduate School dissertation series reproduces dissertations that have been approved by the student's dissertation committee....

Service differentiation in spare parts supply through dedicated stocks