Buradasınız

Anasayfa » Content

A heuristic to minimize the inventory value of repairable parts with service constraints: application to an airline company

Journal Name:

  • Journal of Industrial Engineering and Management

Publication Year:

  • 2013

Key Words:

Author NameUniversity of Author
Abstract (2. Language): 
Purpose: This paper focuses on the improvement of the inventory management of repairable parts of the airline company Air Nostrum. The company uses a common sales replacement policy to manage their repairable parts and the same target fill rate for every item. This target is very high in order to assure a high availability of the aircrafts, dealing also to a high inventory value. Design/methodology/approach: However, this paper shows that an alternative heuristic approach outperforms the previous one terms of inventory value while fulfilling the target fill rate. Findings: This improvement is illustrated with an extensive and real dataset and may lead to a significant inventory reduction. Originality/value: Therefore, a company can design its inventory policies applying this heuristic focused on inventory reduction with a service level constraint instead of the usual cost optimization or service level fulfillment.
Bookmark/Search this post with
FULL TEXT (PDF): 
PDF icon arastrmx_141136_6_pp_771-778.pdf
  • 3
771-778
  • English

REFERENCES

References: 

Armstrong, D.J. (1985). Sharpening Inventory Management. Harvard Business Review, 63(6),
42-58.
Badinelli, R.D. (1986). Optimal safety-stock investment through subjective evaluation of
stockout costs. Decision Sciences, 17(3), 312-328. http://dx.doi.org/10.1111/j.1540-
5915.1986.tb00229.x
Feeney, G.J., & Sherbrooke, C.C. (1966). The (S-1,S) inventory policy under compound Poisson
demand. Management Science, 12(5), 391-411. http://dx.doi.org/10.1287/mnsc.12.5.391
Fogarty, D.W., Blackstone, J.H., & Hoffman, T.R. (1991). Production and Inventory
Management. Second ed. Cincinnati, Ohio: South-Western Publishing Co.
Guide, J., & Srivastava, R. (1997). Repairable inventory theory: Models and applications.
European Journal of Operational Research, 102(1), 1-20. http://dx.doi.org/10.1016/S0377-
2217(97)00155-0
Kennedy, W.J., Patterson, J.W., & Fredendall, L.D. (2002). An overview of recent literature on
spare parts inventories. International Journal of Production Economics, 76(2), 201-215.
http://dx.doi.org/10.1016/S0925-5273(01)00174-8
Knod, E., & Schonberger, R. (2001). Operations management: Meeting customer demands.
Cincinnati, Ohio: South-Western Publishing Co.
Muckstadt, J.A., & Thomas, L.J. (1980). Are Multi-Echelon Inventory Methods Worth
Implementing in Systems with Low-Demand-Rate Items. Management Science, 26(5),
483-494. http://dx.doi.org/10.1287/mnsc.26.5.483
Palmer, M., Babiloni, E., Cardós, M., & Estellés, S. (2012). On the Exact Calculation of the Fill
Rate for Repairable Parts: Application to an Airline Company. In Industrial Engineering:
Innovative Networks. Springer-Verlag London Limited.
Silver, E.A., Pyke, D.F., & Peterson, R. (1998). Inventory Management and Production Planning
and Scheduling. (3ª ed.) Wiley.
Teunter, R.H., Babai, M.Z., & Syntetos, A.A. (2010). ABC Classification: Service Levels and
Inventory Costs. Production and Operations Management, 19(3), 343-352.
http://dx.doi.org/10.1111/j.1937-5956.2009.01098.x
Thonemann, U.W., Brown, A. O., & Hausman, W. H. (2002). Easy quantification of improved
spare parts inventory policies. Management Science, 48(9), 1213-1225.
http://dx.doi.org/10.1287/mnsc.48.9.1213.173
Zhang, R.Q., Hopp, W.J., & Supatgiat, C. (2001). Spreadsheet implementable inventory control
for a distribution center. Journal of Heuristics, 7(2), 185-203.
http://dx.doi.org/10.1023/A:1009613921001

Thank you for copying data from http://www.arastirmax.com