A new approximate evaluation method for two-echelon inventory systems with emergency shipments
We consider the inventory control of repairable spare parts in a network consisting of a central warehouse, a central repair facility, and multiple local warehouses. Demands for spare parts occur at the local warehouses. If a local warehouse is out of stock, then an arriving demand is satisfied by a...
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| Veröffentlicht in: | Annals of operations research 2015-01, Vol.224 (1), p.147-169 |
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| creator | Özkan, Erhun van Houtum, Geert-Jan Serin, Yasemin |
| description | We consider the inventory control of repairable spare parts in a network consisting of a central warehouse, a central repair facility, and multiple local warehouses. Demands for spare parts occur at the local warehouses. If a local warehouse is out of stock, then an arriving demand is satisfied by an emergency shipment from the central warehouse or the central repair facility. Such emergency shipments are common practice for networks that support technical systems with high downtime costs. We develop a new evaluation method that provides accurate approximations for the key performance measures like fractions of demands supplied by the local warehouses or emergency shipments. The method can be easily incorporated in existing (greedy) heuristic optimization methods. Our method outperforms the approximate evaluation method of Muckstadt and Thomas (Manag. Sci. 26:483–494,
1980
), as we show via a numerical analysis. Finally, we show that the performance of the system is virtually insensitive to the leadtime distribution of repairs at the central repair facility. |
| doi_str_mv | 10.1007/s10479-013-1401-9 |
| format | Article |
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1980
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1980
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Finally, we show that the performance of the system is virtually insensitive to the leadtime distribution of repairs at the central repair facility.</description><subject>Approximation</subject><subject>Binomial distribution</subject><subject>Business and Management</subject><subject>Combinatorics</subject><subject>Component parts</subject><subject>Costs</subject><subject>Demand</subject><subject>Emergencies</subject><subject>Heuristic</subject><subject>Industrial engineering</subject><subject>Inventory control</subject><subject>Maintenance management</subject><subject>Markov analysis</subject><subject>Mathematical models</subject><subject>Methods</subject><subject>Networks</subject><subject>OEM</subject><subject>Operations research</subject><subject>Operations Research/Decision Theory</subject><subject>Optimization</subject><subject>Repair</subject><subject>Shipment of goods</subject><subject>Shipments</subject><subject>Studies</subject><subject>Suppliers</subject><subject>Supply 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Demands for spare parts occur at the local warehouses. If a local warehouse is out of stock, then an arriving demand is satisfied by an emergency shipment from the central warehouse or the central repair facility. Such emergency shipments are common practice for networks that support technical systems with high downtime costs. We develop a new evaluation method that provides accurate approximations for the key performance measures like fractions of demands supplied by the local warehouses or emergency shipments. The method can be easily incorporated in existing (greedy) heuristic optimization methods. Our method outperforms the approximate evaluation method of Muckstadt and Thomas (Manag. Sci. 26:483–494,
1980
), as we show via a numerical analysis. Finally, we show that the performance of the system is virtually insensitive to the leadtime distribution of repairs at the central repair facility.</abstract><cop>Boston</cop><pub>Springer US</pub><doi>10.1007/s10479-013-1401-9</doi><tpages>23</tpages></addata></record> |
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| source | EBSCOhost Business Source Complete; SpringerLink Journals - AutoHoldings |
| subjects | Approximation Binomial distribution Business and Management Combinatorics Component parts Costs Demand Emergencies Heuristic Industrial engineering Inventory control Maintenance management Markov analysis Mathematical models Methods Networks OEM Operations research Operations Research/Decision Theory Optimization Repair Shipment of goods Shipments Studies Suppliers Supply chains Theory of Computation Warehouses Warehousing |
| title | A new approximate evaluation method for two-echelon inventory systems with emergency shipments |
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