Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance

Joan Stip; Lois Aerts; Geert-Jan van Houtum

doi:10.1109/WSC57314.2022.10015523

Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance

Joan Stip, Lois Aerts, Geert-Jan van Houtum

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

2 Citations (Scopus)

6 Downloads (Pure)

Abstract

In order to meet service level agreements at minimal cost, Original Equipment Manufacturers (OEMs) use spare parts planning models to determine the optimal base stock levels at the warehouses in their service network. In practice, however, these optimized base stock levels result in a realized performance that deviates from the expected performance. Therefore, it is beneficial for these companies to evaluate the base stock levels in terms of service performance, inventory value, and costs. In order to measure this planning performance, we developed a digital twin that is able to measure the planning performance and identify root causes for the performance gap. Our digital twin helped ASML, an OEM in the semiconductor industry, to create a feedback loop between the spare parts planning model and its realized performance in practice, providing a mechanism to learn from past results and determine actions to close the gap between the expected and realized performance.

Original language	English
Title of host publication	Proceedings of the 2022 Winter Simulation Conference
Editors	B. Feng, G. Pedrielli, Y. Peng, S. Shashaani, E. Song, C.G. Corlu, L.H. Lee, E.P. Chew, T. Roeder, P. Lendermann
Publisher	Institute of Electrical and Electronics Engineers
Pages	1533-1544
Number of pages	12
ISBN (Electronic)	978-1-6654-7661-4
DOIs	https://doi.org/10.1109/WSC57314.2022.10015523
Publication status	Published - 23 Jan 2023
Event	2022 Winter Simulation Conference, WSC 2022: Reimagine Tomorrow - Singapore, Singapore Duration: 11 Dec 2022 → 14 Dec 2022 https://meetings.informs.org/wordpress/wsc2022/

Conference

Conference	2022 Winter Simulation Conference, WSC 2022
Country/Territory	Singapore
City	Singapore
Period	11/12/22 → 14/12/22
Internet address	https://meetings.informs.org/wordpress/wsc2022/

Keywords

maintenance
spare parts

Access to Document

10.1109/WSC57314.2022.10015523

Cite this

Stip, J., Aerts, L., & van Houtum, G.-J. (2023). Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance. In B. Feng, G. Pedrielli, Y. Peng, S. Shashaani, E. Song, C. G. Corlu, L. H. Lee, E. P. Chew, T. Roeder, & P. Lendermann (Eds.), Proceedings of the 2022 Winter Simulation Conference (pp. 1533-1544). Article 10015523 Institute of Electrical and Electronics Engineers. https://doi.org/10.1109/WSC57314.2022.10015523

Stip, Joan ; Aerts, Lois ; van Houtum, Geert-Jan. / Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance. Proceedings of the 2022 Winter Simulation Conference. editor / B. Feng ; G. Pedrielli ; Y. Peng ; S. Shashaani ; E. Song ; C.G. Corlu ; L.H. Lee ; E.P. Chew ; T. Roeder ; P. Lendermann. Institute of Electrical and Electronics Engineers, 2023. pp. 1533-1544

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title = "Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance",

abstract = "In order to meet service level agreements at minimal cost, Original Equipment Manufacturers (OEMs) use spare parts planning models to determine the optimal base stock levels at the warehouses in their service network. In practice, however, these optimized base stock levels result in a realized performance that deviates from the expected performance. Therefore, it is beneficial for these companies to evaluate the base stock levels in terms of service performance, inventory value, and costs. In order to measure this planning performance, we developed a digital twin that is able to measure the planning performance and identify root causes for the performance gap. Our digital twin helped ASML, an OEM in the semiconductor industry, to create a feedback loop between the spare parts planning model and its realized performance in practice, providing a mechanism to learn from past results and determine actions to close the gap between the expected and realized performance.",

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author = "Joan Stip and Lois Aerts and \{van Houtum\}, Geert-Jan",

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doi = "10.1109/WSC57314.2022.10015523",

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editor = "B. Feng and G. Pedrielli and Y. Peng and S. Shashaani and E. Song and C.G. Corlu and L.H. Lee and E.P. Chew and T. Roeder and P. Lendermann",

booktitle = "Proceedings of the 2022 Winter Simulation Conference",

publisher = "Institute of Electrical and Electronics Engineers",

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Stip, J, Aerts, L & van Houtum, G-J 2023, Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance. in B Feng, G Pedrielli, Y Peng, S Shashaani, E Song, CG Corlu, LH Lee, EP Chew, T Roeder & P Lendermann (eds), Proceedings of the 2022 Winter Simulation Conference., 10015523, Institute of Electrical and Electronics Engineers, pp. 1533-1544, 2022 Winter Simulation Conference, WSC 2022, Singapore, Singapore, 11/12/22. https://doi.org/10.1109/WSC57314.2022.10015523

Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance. / Stip, Joan; Aerts, Lois; van Houtum, Geert-Jan.
Proceedings of the 2022 Winter Simulation Conference. ed. / B. Feng; G. Pedrielli; Y. Peng; S. Shashaani; E. Song; C.G. Corlu; L.H. Lee; E.P. Chew; T. Roeder; P. Lendermann. Institute of Electrical and Electronics Engineers, 2023. p. 1533-1544 10015523.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

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AU - Aerts, Lois

AU - van Houtum, Geert-Jan

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N2 - In order to meet service level agreements at minimal cost, Original Equipment Manufacturers (OEMs) use spare parts planning models to determine the optimal base stock levels at the warehouses in their service network. In practice, however, these optimized base stock levels result in a realized performance that deviates from the expected performance. Therefore, it is beneficial for these companies to evaluate the base stock levels in terms of service performance, inventory value, and costs. In order to measure this planning performance, we developed a digital twin that is able to measure the planning performance and identify root causes for the performance gap. Our digital twin helped ASML, an OEM in the semiconductor industry, to create a feedback loop between the spare parts planning model and its realized performance in practice, providing a mechanism to learn from past results and determine actions to close the gap between the expected and realized performance.

AB - In order to meet service level agreements at minimal cost, Original Equipment Manufacturers (OEMs) use spare parts planning models to determine the optimal base stock levels at the warehouses in their service network. In practice, however, these optimized base stock levels result in a realized performance that deviates from the expected performance. Therefore, it is beneficial for these companies to evaluate the base stock levels in terms of service performance, inventory value, and costs. In order to measure this planning performance, we developed a digital twin that is able to measure the planning performance and identify root causes for the performance gap. Our digital twin helped ASML, an OEM in the semiconductor industry, to create a feedback loop between the spare parts planning model and its realized performance in practice, providing a mechanism to learn from past results and determine actions to close the gap between the expected and realized performance.

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ER -

Stip J, Aerts L, van Houtum GJ. Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance. In Feng B, Pedrielli G, Peng Y, Shashaani S, Song E, Corlu CG, Lee LH, Chew EP, Roeder T, Lendermann P, editors, Proceedings of the 2022 Winter Simulation Conference. Institute of Electrical and Electronics Engineers. 2023. p. 1533-1544. 10015523 doi: 10.1109/WSC57314.2022.10015523

Closing The Gap: A Digital Twin as a Mechanism to Improve Spare Parts Planning Performance

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Keywords

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