The final order problem for repairable spare parts under condemnation

J.P.J. Kooten, van, T. Tan

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Abstract

We consider a manufacturer of complex machines that offers service contracts to her customers, committing herself to repair failed spare parts throughout a fixed service period. The suppliers of spare parts often discontinue the production of some parts as technology advances and ask the manufacturer to place a final order. We address the problem of determining final orders for such spare parts. The parts that we consider are repairable, but they are subject to the risk of condemnation. We build a transient Markovian model to represent the problem for a repairable spare part with a certain repair probability and repair lead time and we present some approximations that allow for further real life characteristics to be included. Furthermore, an approximate model that can be computed more efficiently is presented, and the sensitivity of the results obtained with respect to the problem parameters for both of the models is discussed.
Original languageEnglish
Place of PublicationEindhoven
PublisherTechnische Universiteit Eindhoven
Number of pages18
ISBN (Print)978-90-386-1048-1
Publication statusPublished - 2007

Publication series

NameBETA publicatie : working papers
Volume214
ISSN (Print)1386-9213

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  • Cite this

    Kooten, van, J. P. J., & Tan, T. (2007). The final order problem for repairable spare parts under condemnation. (BETA publicatie : working papers; Vol. 214). Technische Universiteit Eindhoven.