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Flexibility in service parts supply chain: a study on emergency resupply in aviation MRO

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  • Aghil Rezaei Somarin
  • Sobhan Asian
  • Fariborz Jolai
  • Songlin Chen

Abstract

Recent trends in the commercial aviation industry have resulted in rapidly increasing complexity and decentralisation in service parts logistics systems. As a consequence, MRO service providers tend to adopt more flexible strategies, such as service parts sourcing and demand fulfilment for customers with different service-level requirements. The MRO service providers often enter into cooperative agreements with other service providers to pool inventories, enabling them to increase their flexibility in delivering services to multiple airlines with different contractual terms. Although using cooperative strategies, such as emergency resupply, is useful to increase flexibility, the inherent complexity of optimal mechanism is a critical issue that needs to be further investigated. To this aim, we consider a repairable service parts inventory system with multi-customer classes and develop an optimal emergency resupply policy. Following this, to overcome the intractability issue of finding the optimal policy, an efficient approximation method is proposed. Numerical results indicate that the proposed approximation method is highly accurate, and leads to a significant costs reduction. This paper sheds light on the effectiveness of emergency resupply policy that improves MRO service providers’ flexibility and enables them to ensure responsive service parts inventory.

Suggested Citation

  • Aghil Rezaei Somarin & Sobhan Asian & Fariborz Jolai & Songlin Chen, 2018. "Flexibility in service parts supply chain: a study on emergency resupply in aviation MRO," International Journal of Production Research, Taylor & Francis Journals, vol. 56(10), pages 3547-3562, May.
    • Handle: RePEc:taf:tprsxx:v:56:y:2018:i:10:p:3547-3562
    DOI: 10.1080/00207543.2017.1351640
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    Cited by:

    1. Muhammad Junaid & Ye Xue & Muzzammil Wasim Syed & Ji Zu Li & Muhammad Ziaullah, 2019. "A Neutrosophic AHP and TOPSIS Framework for Supply Chain Risk Assessment in Automotive Industry of Pakistan," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    2. Alexander Cimprich & Steven B. Young & Dieuwertje Schrijvers & Anthony Y. Ku & Christian Hagelüken & Patrice Christmann & Roderick Eggert & Komal Habib & Atsufumi Hirohata & Alan J. Hurd & Min-Ha Lee , 2023. "The role of industrial actors in the circular economy for critical raw materials: a framework with case studies across a range of industries," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 301-319, June.
    3. Ku, Edward C.S., 2022. "Developing business process agility: Evidence from inter-organizational information systems of airlines and travel agencies," Journal of Air Transport Management, Elsevier, vol. 103(C).
    4. Chen Wei & Sobhan Asian & Gurdal Ertek & Zhi-Hua Hu, 2020. "Location-based pricing and channel selection in a supply chain: a case study from the food retail industry," Annals of Operations Research, Springer, vol. 291(1), pages 959-984, August.
    5. Hasti Seraji & Reza Tavakkoli-Moghaddam & Sobhan Asian & Harpreet Kaur, 2022. "An integrative location-allocation model for humanitarian logistics with distributive injustice and dissatisfaction under uncertainty," Annals of Operations Research, Springer, vol. 319(1), pages 211-257, December.
    6. Songtao Zhang & Panpan Zhang & Min Zhang, 2019. "Fuzzy Emergency Model and Robust Emergency Strategy of Supply Chain System under Random Supply Disruptions," Complexity, Hindawi, vol. 2019, pages 1-10, January.

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