IDEAS home Printed from https://ideas.repec.org/a/eee/reensy/v168y2017icp262-273.html
   My bibliography  Save this article

Numerical study of inventory management under various maintenance policies

Author

Listed:
  • Poppe, Joeri
  • Basten, Rob J.I.
  • Boute, Robert N.
  • Lambrecht, Marc R.

Abstract

Capital assets, such as manufacturing equipment, require maintenance to remain functioning. Maintenance can be performed when a component breaks down and needs replacement (i.e., corrective maintenance), or the maintenance and part replacement can be performed preventively. Preventive maintenance can be planned on a periodic basis (periodic maintenance), or it can be triggered by a certain monitored condition (condition-based maintenance). Preventive maintenance policies are gaining traction in the business world, but for many companies it is unclear what their impact is on the resulting inventory requirements for the spare parts that are used for the maintenance interventions. We study the impact of the maintenance policy on the inventory requirements and the corresponding costs for a setting that is realistic at an OEM in the compressed air industry. Preventive policies increase the total demand for spare parts compared to corrective maintenance, since the former do not exploit the entire useful life of the components. This leads to higher inventory requirements. At the same time, the preventive policies inhibit advance demand information, as the interventions, and correspondingly the spare parts demands, are planned in advance. Using a simulation study, we show that by using this advance demand information in managing the spare part inventory, the increase in inventory requirements of preventive maintenance policies can to a large extent be offset; for condition-based maintenance, we find that inventories can even be lower compared to corrective maintenance, provided that the advance demand information is used correctly when managing inventories. Our analysis sheds light on the behaviour of the inventory related costs under various maintenance policies.

Suggested Citation

  • Poppe, Joeri & Basten, Rob J.I. & Boute, Robert N. & Lambrecht, Marc R., 2017. "Numerical study of inventory management under various maintenance policies," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 262-273.
  • Handle: RePEc:eee:reensy:v:168:y:2017:i:c:p:262-273
    DOI: 10.1016/j.ress.2017.06.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0951832016306846
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ress.2017.06.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Van Horenbeek, Adriaan & Buré, Jasmine & Cattrysse, Dirk & Pintelon, Liliane & Vansteenwegen, Pieter, 2013. "Joint maintenance and inventory optimization systems: A review," International Journal of Production Economics, Elsevier, vol. 143(2), pages 499-508.
    2. Van Horenbeek, Adriaan & Pintelon, Liliane, 2013. "A dynamic predictive maintenance policy for complex multi-component systems," Reliability Engineering and System Safety, Elsevier, vol. 120(C), pages 39-50.
    3. Rema Hariharan & Paul Zipkin, 1995. "Customer-Order Information, Leadtimes, and Inventories," Management Science, INFORMS, vol. 41(10), pages 1599-1607, October.
    4. Guillermo Gallego & Özalp Özer, 2001. "Integrating Replenishment Decisions with Advance Demand Information," Management Science, INFORMS, vol. 47(10), pages 1344-1360, October.
    5. Goossens, Adriaan J.M. & Basten, Rob J.I., 2015. "Exploring maintenance policy selection using the Analytic Hierarchy Process; An application for naval ships," Reliability Engineering and System Safety, Elsevier, vol. 142(C), pages 31-41.
    6. 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.
    7. Bijvank, Marco & Vis, Iris F.A., 2011. "Lost-sales inventory theory: A review," European Journal of Operational Research, Elsevier, vol. 215(1), pages 1-13, November.
    8. Wang, Hongzhou, 2002. "A survey of maintenance policies of deteriorating systems," European Journal of Operational Research, Elsevier, vol. 139(3), pages 469-489, June.
    9. Thomas, L. C. & Osaki, Shunji, 1978. "An optimal ordering policy for a spare unit with lead time," European Journal of Operational Research, Elsevier, vol. 2(6), pages 409-419, November.
    10. Karsten, Frank & Basten, Rob J.I., 2014. "Pooling of spare parts between multiple users: How to share the benefits?," European Journal of Operational Research, Elsevier, vol. 233(1), pages 94-104.
    11. Richard Barlow & Larry Hunter, 1960. "Optimum Preventive Maintenance Policies," Operations Research, INFORMS, vol. 8(1), pages 90-100, February.
    12. Zohrul Kabir, A. B. M. & Al-Olayan, Ahmed S., 1996. "A stocking policy for spare part provisioning under age based preventive replacement," European Journal of Operational Research, Elsevier, vol. 90(1), pages 171-181, April.
    13. Tinga, Tiedo, 2010. "Application of physical failure models to enable usage and load based maintenance," Reliability Engineering and System Safety, Elsevier, vol. 95(10), pages 1061-1075.
    14. van Noortwijk, J.M., 2009. "A survey of the application of gamma processes in maintenance," Reliability Engineering and System Safety, Elsevier, vol. 94(1), pages 2-21.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Łukasz Wieczorek & Przemysław Ignaciuk, 2018. "Continuous Genetic Algorithms as Intelligent Assistance for Resource Distribution in Logistic Systems," Data, MDPI, vol. 3(4), pages 1-14, December.
    2. Van der Auweraer, Sarah & Boute, Robert, 2019. "Forecasting spare part demand using service maintenance information," International Journal of Production Economics, Elsevier, vol. 213(C), pages 138-149.
    3. Zhu, Sha & Jaarsveld, Willem van & Dekker, Rommert, 2020. "Spare parts inventory control based on maintenance planning," Reliability Engineering and System Safety, Elsevier, vol. 193(C).
    4. Xian Zhao & Siqi Wang & Xiaoyue Wang, 2018. "Characteristics and Trends of Research on New Energy Vehicle Reliability Based on the Web of Science," Sustainability, MDPI, vol. 10(10), pages 1-25, October.
    5. Van der Auweraer, Sarah & Boute, Robert N. & Syntetos, Aris A., 2019. "Forecasting spare part demand with installed base information: A review," International Journal of Forecasting, Elsevier, vol. 35(1), pages 181-196.
    6. Wakiru, James & Pintelon, Liliane & Muchiri, Peter N. & Chemweno, Peter K. & Mburu, Stanley, 2020. "Towards an innovative lubricant condition monitoring strategy for maintenance of ageing multi-unit systems," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    7. Turan, Hasan Hüseyin & Atmis, Mahir & Kosanoglu, Fuat & Elsawah, Sondoss & Ryan, Michael J., 2020. "A risk-averse simulation-based approach for a joint optimization of workforce capacity, spare part stocks and scheduling priorities in maintenance planning," Reliability Engineering and System Safety, Elsevier, vol. 204(C).
    8. Zhu, Sha & van Jaarsveld, Willem & Dekker, Rommert, 2022. "Critical project planning and spare parts inventory management in shutdown maintenance," Reliability Engineering and System Safety, Elsevier, vol. 219(C).
    9. Wu, Shaomin & Do, Phuc, 2017. "Editorial," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 1-3.
    10. Lin, Boliang & Zhao, Yinan, 2021. "Synchronized optimization of EMU train assignment and second-level preventive maintenance scheduling," Reliability Engineering and System Safety, Elsevier, vol. 215(C).
    11. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Poppe, Joeri & Boute, Robert N. & Lambrecht, Marc R., 2018. "A hybrid condition-based maintenance policy for continuously monitored components with two degradation thresholds," European Journal of Operational Research, Elsevier, vol. 268(2), pages 515-532.
    2. Olde Keizer, Minou C.A. & Teunter, Ruud H. & Veldman, Jasper, 2017. "Joint condition-based maintenance and inventory optimization for systems with multiple components," European Journal of Operational Research, Elsevier, vol. 257(1), pages 209-222.
    3. de Jonge, Bram & Teunter, Ruud & Tinga, Tiedo, 2017. "The influence of practical factors on the benefits of condition-based maintenance over time-based maintenance," Reliability Engineering and System Safety, Elsevier, vol. 158(C), pages 21-30.
    4. Lolli, Francesco & Coruzzolo, Antonio Maria & Peron, Mirco & Sgarbossa, Fabio, 2022. "Age-based preventive maintenance with multiple printing options," International Journal of Production Economics, Elsevier, vol. 243(C).
    5. de Jonge, Bram & Scarf, Philip A., 2020. "A review on maintenance optimization," European Journal of Operational Research, Elsevier, vol. 285(3), pages 805-824.
    6. Finkelstein, Maxim & Cha, Ji Hwan & Langston, Amy, 2023. "Improving classical optimal age-replacement policies for degrading items," Reliability Engineering and System Safety, Elsevier, vol. 236(C).
    7. Lu, Biao & Zhou, Xiaojun, 2017. "Opportunistic preventive maintenance scheduling for serial-parallel multistage manufacturing systems with multiple streams of deterioration," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 116-127.
    8. Alaswad, Suzan & Xiang, Yisha, 2017. "A review on condition-based maintenance optimization models for stochastically deteriorating system," Reliability Engineering and System Safety, Elsevier, vol. 157(C), pages 54-63.
    9. Nguyen, Kim-Anh & Do, Phuc & Grall, Antoine, 2017. "Joint predictive maintenance and inventory strategy for multi-component systems using Birnbaum’s structural importance," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 249-261.
    10. Lin, X. & Basten, R.J.I. & Kranenburg, A.A. & van Houtum, G.J., 2017. "Condition based spare parts supply," Reliability Engineering and System Safety, Elsevier, vol. 168(C), pages 240-248.
    11. David Winkelmann & Charlotte Kohler, 2024. "Subscription-Based Inventory Planning for E-Grocery Retailing," Papers 2404.04097, arXiv.org.
    12. Zio, Enrico & Compare, Michele, 2013. "Evaluating maintenance policies by quantitative modeling and analysis," Reliability Engineering and System Safety, Elsevier, vol. 109(C), pages 53-65.
    13. Panagiotidou, Sofia, 2014. "Joint optimization of spare parts ordering and maintenance policies for multiple identical items subject to silent failures," European Journal of Operational Research, Elsevier, vol. 235(1), pages 300-314.
    14. Olde Keizer, Minou C.A. & Flapper, Simme Douwe P. & Teunter, Ruud H., 2017. "Condition-based maintenance policies for systems with multiple dependent components: A review," European Journal of Operational Research, Elsevier, vol. 261(2), pages 405-420.
    15. Wang, Yukun & Gao, Weizheng & Li, Xiaopeng & Liu, Yiliu, 2024. "Joint optimization of performance-based contracting, condition-based maintenance and spare parts inventory for degrading production systems," Reliability Engineering and System Safety, Elsevier, vol. 243(C).
    16. Van Horenbeek, Adriaan & Buré, Jasmine & Cattrysse, Dirk & Pintelon, Liliane & Vansteenwegen, Pieter, 2013. "Joint maintenance and inventory optimization systems: A review," International Journal of Production Economics, Elsevier, vol. 143(2), pages 499-508.
    17. Ji Hwan Cha & Maxim Finkelstein & Gregory Levitin, 2022. "Replacement Policy for Heterogeneous Items Subject to Gamma Degradation Processes," Methodology and Computing in Applied Probability, Springer, vol. 24(3), pages 1323-1340, September.
    18. Liu, Bin & Pandey, Mahesh D. & Wang, Xiaolin & Zhao, Xiujie, 2021. "A finite-horizon condition-based maintenance policy for a two-unit system with dependent degradation processes," European Journal of Operational Research, Elsevier, vol. 295(2), pages 705-717.
    19. Basten, Rob J.I. & Ryan, Jennifer K., 2019. "The value of maintenance delay flexibility for improved spare parts inventory management," European Journal of Operational Research, Elsevier, vol. 278(2), pages 646-657.
    20. Estelle Deloux & Mitra Fouladirad & Christophe Bérenguer, 2016. "Health-and-usage-based maintenance policies for a partially observable deteriorating system," Journal of Risk and Reliability, , vol. 230(1), pages 120-129, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reensy:v:168:y:2017:i:c:p:262-273. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/reliability-engineering-and-system-safety .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.