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Virtual pooled inventories for equipment-intensive industries. An implementation in a paper district

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  • Braglia, M.
  • Frosolini, M.

Abstract

Inventory pooling occurs when different actors share their inventories with the aim of reducing costs while improving performances. The paper-making industry requires large amounts of ready to install spares aimed at assuring high availability, but presents the drawback of excessive inventory costs. Pooling inventories, with the support of appropriate IT solutions, can be considered an effective strategy to improve availability while reducing the total costs. In the present work a real-life implementation within an important Italian paper-making district has been successfully carried out. Throughout the study the most recent theoretical models have been adapted after a methodical analysis that has been devoted to allow the identification and of the most significant issues and the building of a wide and solid agreement among the participants. Indeed, this required a thorough investigation, since the involved actors are generally competitors and only agree to pool inventories if this leads to increasing profits for themselves.

Suggested Citation

  • Braglia, M. & Frosolini, M., 2013. "Virtual pooled inventories for equipment-intensive industries. An implementation in a paper district," Reliability Engineering and System Safety, Elsevier, vol. 112(C), pages 26-37.
    • Handle: RePEc:eee:reensy:v:112:y:2013:i:c:p:26-37
    DOI: 10.1016/j.ress.2012.11.010
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    References listed on IDEAS

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    Cited by:

    1. Godoy, David R. & Pascual, Rodrigo & Knights, Peter, 2013. "Critical spare parts ordering decisions using conditional reliability and stochastic lead time," Reliability Engineering and System Safety, Elsevier, vol. 119(C), pages 199-206.
    2. Godoy, David R. & Pascual, Rodrigo & Knights, Peter, 2014. "A decision-making framework to integrate maintenance contract conditions with critical spares management," Reliability Engineering and System Safety, Elsevier, vol. 131(C), pages 102-108.
    3. Jan Block & Alireza Ahmadi & Xun Xiao & Uday Kumar, 2019. "Spares provisioning strategy for periodically replaced units within the fleet retirement period," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 10(3), pages 299-315, June.
    4. Wang, Wenbin & Yue, Shuai, 2015. "An inventory pooling model for spare units of critical systems that serve multi-companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 34-44.
    5. Wijk, Olle & Andersson, Patric & Block, Jan & Righard, Thord, 2017. "Phase-out maintenance optimization for an aircraft fleet," International Journal of Production Economics, Elsevier, vol. 188(C), pages 105-115.
    6. Peeyush Vats & Gunjan Soni & Ajay Pal Singh Rathore & Surya Prakash Yadav, 2019. "A demand aggregation approach for inventory control in two echelon supply chain under uncertainty," OPSEARCH, Springer;Operational Research Society of India, vol. 56(3), pages 840-868, September.
    7. Hosang Jung & Sukjae Jeong, 2018. "The Economic Effect of Virtual Warehouse-Based Inventory Information Sharing for Sustainable Supplier Management," Sustainability, MDPI, vol. 10(5), pages 1-19, May.

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