A new partial pooling structure for spare parts networks

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

Research output: Contribution to journalArticleAcademicpeer-review

82 Citations (Scopus)
5 Downloads (Pure)

Abstract

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. As a result of our work ASML was able to improve spare parts planning.
Original languageEnglish
Pages (from-to)908-921
Number of pages14
JournalEuropean Journal of Operational Research
Volume199
Issue number3
DOIs
Publication statusPublished - 2009

Fingerprint

Dive into the research topics of 'A new partial pooling structure for spare parts networks'. Together they form a unique fingerprint.

Cite this