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Multi-echelon, Multi-indenture System

In: Spare Parts Inventory Control under System Availability Constraints

Author

Listed:
  • Geert-Jan Houtum

    (Eindhoven University of Technology)

  • Bram Kranenburg

    (Consultants in Quantitative Methods CQM B.V.)

Abstract

Chapter 7 is devoted to a general multi-item, multi-echelon, multi-indenture spare parts inventory system. For the distribution network, we assume a tree structure with one central point, locations at close distance of installed machines, and intermediate points. Each location can keep spare parts on stock and may have repair facilities. Regarding the multi-indenture structure, we assume that we have assemblies, subassemblies, and lower level components. We allow commonality at the level of the subassemblies and at lower levels. We describe an exact recursion for the evaluation of a given basestock policy. This recursion leads to an exact evaluation method, and it is the basis for an accurate and efficient approximate evaluation method based on two-moment fits. Next, we describe a greedy heuristic, and we present a case study at the Royal Netherlands Navy.

Suggested Citation

  • Geert-Jan Houtum & Bram Kranenburg, 2015. "Multi-echelon, Multi-indenture System," International Series in Operations Research & Management Science, in: Spare Parts Inventory Control under System Availability Constraints, edition 127, chapter 0, pages 159-183, Springer.
    • Handle: RePEc:spr:isochp:978-1-4899-7609-3_7
    DOI: 10.1007/978-1-4899-7609-3_7
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