A new partial pooling structure for spare parts networks

A.A. Kranenburg, G.J.J.A.N. Houtum, van

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Motivated by real-life spare parts networks, we introduce a new spare parts inventory model with lateral transshipment. We consider a multi-item, multi-location, single-echelon system with base stock control and aggregate mean waiting time constraints. The local warehouses are divided into two types: main and regular local warehouses. Lateral transshipment is allowed from main local warehouses only. A practical advantage of this structure is that only a limited number of local warehouses has to be equipped to provide lateral transshipment. This structure represents a new form of partial pooling, with no pooling (zero main locals) and full pooling (zero regular locals) as special cases. We develop an accurate and fast approximate evaluation method, and exploit this method in a heuristic procedure for the base stock level determination. We show that only a small number of main locals is sufficient to obtain most of the full pooling benefits. We also apply our methods to case data of ASML, an original equipment manufacturer in the semiconductor supplier industry, and show that their operations can be significantly improved by our new model.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages29
ISBN (Print)978-90-386-1357-4
Publication statusPublished - 2008

Publication series

NameBETA publicatie : working papers
ISSN (Print)1386-9213


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