An iterative method for the simultaneous optimization of repair decisions and spare parts stocks

R.J.I. Basten, M.C. Heijden, van der, J.M.J. Schutten

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Abstract

In the development process of a capital good, it should be decided how to maintain it once it is in the field. The level of repair analysis (LORA) is used to answer the questions: 1) which components to repair upon failure, and which to discard, 2) at which locations in the repair network to perform the repairs, and 3) at which locations to deploy resources, such as repair equipment. Next, it should be decided what amount of spare parts to store at each location in the network in order to guarantee a certain availability of the product. Usually, the LORA and the spare parts stocking problem are solved sequentially. However, solving the LORA first can lead to high spare parts costs. Therefore, we propose an iterative approach to solve the two problems jointly. We find that the total costs are lowered with 3.2% on average and almost 35% at maximum in our experiments. A cost reduction of a few percent may be worth hundreds of thousands of euros over the life cycle of a capital good.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages21
ISBN (Print)978-90-386-2113-5
Publication statusPublished - 2009

Publication series

NameBETA publicatie : working papers
Volume295
ISSN (Print)1386-9213

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Basten, R. J. I., Heijden, van der, M. C., & Schutten, J. M. J. (2009). An iterative method for the simultaneous optimization of repair decisions and spare parts stocks. (BETA publicatie : working papers; Vol. 295). Eindhoven: Technische Universiteit Eindhoven.