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A minimum cost flow model for level of repair analysis

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  • Basten, R.J.I.
  • van der Heijden, M.C.
  • Schutten, J.M.J.
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    Abstract

    Given a product design and a repair network for capital goods, a level of repair analysis determines for each component in the product (1) whether it should be discarded or repaired upon failure and (2) at which location in the repair network to do this. In this paper, we show how the problem can be modelled as a minimum cost flow problem with side constraints. Advantages are that (1) solving our model requires less computational effort than solving existing models and (2) we achieve a high model flexibility, i.e., many practical extensions can be added. Furthermore, we analyse the added value of modelling the exact structure of the repair network, instead of aggregating all data per echelon as is common in the literature. We show that in some cases, cost savings of over 7% can be achieved. We also show when it is sufficient to model the repair network by echelons only, which requires less input data.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 133 (2011)
    Issue (Month): 1 (September)
    Pages: 233-242

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    Handle: RePEc:eee:proeco:v:133:y:2011:i:1:p:233-242

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Maintenance Supply chain management Level of repair analysis Mixed integer programming Minimum cost flows;

    References

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    1. Alfredsson, Patrik, 1997. "Optimization of multi-echelon repairable item inventory systems with simultaneous location of repair facilities," European Journal of Operational Research, Elsevier, vol. 99(3), pages 584-595, June.
    2. Barros, Lilian & Riley, Michael, 2001. "A combinatorial approach to level of repair analysis," European Journal of Operational Research, Elsevier, vol. 129(2), pages 242-251, March.
    3. Murthy, D. N. P. & Solem, O. & Roren, T., 2004. "Product warranty logistics: Issues and challenges," European Journal of Operational Research, Elsevier, vol. 156(1), pages 110-126, July.
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    Cited by:
    1. Basten, R.J.I. & van der Heijden, M.C. & Schutten, J.M.J., 2012. "Joint optimization of level of repair analysis and spare parts stocks," European Journal of Operational Research, Elsevier, vol. 222(3), pages 474-483.

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