Reducing costs of spare parts supply systems via static priorities

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We study a system consisting of one repair shop and one stockpoint, where spare parts of repairables are kept on stock to serve an installed base of systems. Part requests are met from stock if possible, and backordered otherwise. Our objective is to determine initial stock levels and a policy for scheduling repair jobs such that holding and backorder cost are minimized. We propose two dynamic scheduling rules, compare their performance with the static priority rule, and show that even when stock levels and static priorities have been optimized simultaneously, dynamic scheduling rules often reduce total cost by more than 10%.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages25
ISBN (Print)90-386-0823-3
Publication statusPublished - 2006

Publication series

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


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