Optimising a general repair kit problem with a service constraint
Field services are a particular type of after-sales service performed at the customer's location where technicians repair malfunctioning machines. The inventory decisions about which spare part types to take to the repair site and in what quantities is called the repair kit problem. This problem is characterized by an order-based performance measure since a customer is only satisfied when all required spare parts are available to fix the machine. As a result, the service level in the decision making process is defined as a job fill rate. In this paper we derive a closed-form expression for the expected service level and total costs for the repair kit problem in a general setting, where multiple units of each part type can be used in a multi-period problem. Such an all-or-nothing strategy is a new characteristic to investigate, but commonly used in practice. Namely, items are only taken from the inventory when all items to perform the repair are available in the right quantity. We develop a new algorithm to determine the contents of the repair kit both for a service and cost model while incorporating this new expression for the job fill rate. We show that the algorithm finds solutions which differ on average 0.2% from optimal costs. We perform a case study to test the performance of the algorithm in practice. Our approach results in service level improvements of more than 30% against similar holding costs.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stephen C. Graves, 1982. "Note---A Multiple-Item Inventory Model with a Job Completion Criterion," Management Science, INFORMS, vol. 28(11), pages 1334-1337, November.
- John W. Mamer & Stephen A. Smith, 1982. "Optimizing Field Repair Kits Based on Job Completion Rate," Management Science, INFORMS, vol. 28(11), pages 1328-1333, November.
- Heeremans, D. & Gelders, L. F., 1995. "Multiple period repair kit problem with a job completion criterion: A case study," European Journal of Operational Research, Elsevier, vol. 81(2), pages 239-248, March.
- Stephen A. Smith & John C. Chambers & Eli Shlifer, 1980. "Note---Optimal Inventories Based on Job Completion Rate for Repairs Requiring Multiple Items," Management Science, INFORMS, vol. 26(8), pages 849-854, August.
- Teunter, Ruud H., 2006. "The multiple-job repair kit problem," European Journal of Operational Research, Elsevier, vol. 175(2), pages 1103-1116, December.
When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:204:y:2010:i:1:p:76-85. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.