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Simple, efficient heuristics for multi-item multi-location spare parts systems with lateral transshipments and waiting time constraints

Author

Listed:
  • H Wong

    (Katholieke Universiteit Leuven, Celestijnenlaan)

  • G J van Houtum

    (Technische Universiteit Eindhoven)

  • D Cattrysse

    (Katholieke Universiteit Leuven, Celestijnenlaan)

  • D Van Oudheusden

    (Katholieke Universiteit Leuven, Celestijnenlaan)

Abstract

This paper deals with the analysis of a multi-item, continuous review model of a multi-location inventory system of repairable spare parts, in which lateral and emergency shipments occur in response of stock-outs. The objective is to determine close-to-optimal stocking policies minimizing the total cost for inventory holding, lateral transshipments, and emergency shipments subject to a target level for the average waiting times at all locations. We structure the optimization problem as a combinatorial problem and four different heuristics are developed and evaluated in terms of their total costs and computation times. It is shown that the greedy-type heuristic has the best performance. A numerical study is carried out to look at the relative cost savings obtained from the use of multi-item approach and lateral transshipments.

Suggested Citation

  • H Wong & G J van Houtum & D Cattrysse & D Van Oudheusden, 2005. "Simple, efficient heuristics for multi-item multi-location spare parts systems with lateral transshipments and waiting time constraints," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(12), pages 1419-1430, December.
    • Handle: RePEc:pal:jorsoc:v:56:y:2005:i:12:d:10.1057_palgrave.jors.2601952
    DOI: 10.1057/palgrave.jors.2601952
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    References listed on IDEAS

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    Cited by:

    1. Koushik Ramakrishna & Moosa Sharafali & Yun Lim, 2015. "A two-item two-warehouse periodic review inventory model with transshipment," Annals of Operations Research, Springer, vol. 233(1), pages 365-381, October.
    2. Christiane B. Haubitz & Ulrich W. Thonemann, 2021. "How to Change a Running System—Controlling the Transition to Optimized Spare Parts Inventory Policies," Production and Operations Management, Production and Operations Management Society, vol. 30(5), pages 1386-1405, May.
    3. Tiemessen, H.G.H. & Fleischmann, M. & van Houtum, G.J. & van Nunen, J.A.E.E. & Pratsini, E., 2013. "Dynamic demand fulfillment in spare parts networks with multiple customer classes," European Journal of Operational Research, Elsevier, vol. 228(2), pages 367-380.
    4. Paterson, Colin & Kiesmüller, Gudrun & Teunter, Ruud & Glazebrook, Kevin, 2011. "Inventory models with lateral transshipments: A review," European Journal of Operational Research, Elsevier, vol. 210(2), pages 125-136, April.
    5. T W Archibald & D P Black & K D Glazebrook, 2010. "The use of simple calibrations of individual locations in making transshipment decisions in a multi-location inventory network," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(2), pages 294-305, February.
    6. Fritzsche, R., 2012. "Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1065-1079.
    7. van Wingerden, E. & Tan, T. & Van Houtum, G.J., 2019. "The impact of an emergency warehouse in a two-echelon spare parts network," European Journal of Operational Research, Elsevier, vol. 276(3), pages 983-997.
    8. Rahimi-Ghahroodi, S. & Al Hanbali, A. & Vliegen, I.M.H. & Cohen, M.A., 2019. "Joint optimization of spare parts inventory and service engineers staffing with full backlogging," International Journal of Production Economics, Elsevier, vol. 212(C), pages 39-50.
    9. Erhun Özkan & Geert-Jan Houtum & Yasemin Serin, 2015. "A new approximate evaluation method for two-echelon inventory systems with emergency shipments," Annals of Operations Research, Springer, vol. 224(1), pages 147-169, January.
    10. Costantino, Francesco & Di Gravio, Giulio & Tronci, Massimo, 2013. "Multi-echelon, multi-indenture spare parts inventory control subject to system availability and budget constraints," Reliability Engineering and System Safety, Elsevier, vol. 119(C), pages 95-101.
    11. Kranenburg, A.A. & van Houtum, G.J., 2009. "A new partial pooling structure for spare parts networks," European Journal of Operational Research, Elsevier, vol. 199(3), pages 908-921, December.
    12. Amin Yazdekhasti & Yahia Zare Mehrjardi, 2020. "Two-echelon three-indenture warranty distribution network: a hybrid branch and bound, Monte-Carlo approach," Operational Research, Springer, vol. 20(2), pages 1113-1158, June.
    13. Vliegen, I.M.H. & van Houtum, G.J., 2009. "Approximate evaluation of order fill rates for an inventory system of service tools," International Journal of Production Economics, Elsevier, vol. 118(1), pages 339-351, March.
    14. S. Rahimi-Ghahroodi & A. Al Hanbali & W. H. M. Zijm & J. K. W. Ommeren & A. Sleptchenko, 2017. "Integrated planning of spare parts and service engineers with partial backlogging," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 39(3), pages 711-748, July.
    15. Naderi, Siamak & Kilic, Kemal & Dasci, Abdullah, 2020. "A deterministic model for the transshipment problem of a fast fashion retailer under capacity constraints," International Journal of Production Economics, Elsevier, vol. 227(C).

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