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An efficient model formulation for level of repair analysis

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  • R. Basten
  • J. Schutten
  • M. Heijden

Abstract

Given a product design and a repair network, a level of repair analysis ( lora) determines for each component in the product (1) whether it should be discarded or repaired upon failure and (2) at which echelon in the repair network to do this. The objective of the lora is to minimize the total (variable and fixed) costs. We propose an ip model that generalizes the existing models, based on cases that we have seen in practice. Analysis of our model reveals that the integrality constraints on a large number of binary variables can be relaxed without yielding a fractional solution. As a result, we are able to solve problem instances of a realistic size in a couple of seconds on average. Furthermore, we suggest some improvements to the lora analysis in the current literature. Copyright The Author(s) 2009

Suggested Citation

  • R. Basten & J. Schutten & M. Heijden, 2009. "An efficient model formulation for level of repair analysis," Annals of Operations Research, Springer, vol. 172(1), pages 119-142, November.
    • Handle: RePEc:spr:annopr:v:172:y:2009:i:1:p:119-142:10.1007/s10479-009-0516-5
    DOI: 10.1007/s10479-009-0516-5
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    References listed on IDEAS

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    1. Alfredsson, Patrik, 1997. "Optimization of multi-echelon repairable item inventory systems with simultaneous location of repair facilities," European Journal of Operational Research, Elsevier, vol. 99(3), pages 584-595, June.
    2. Barros, Lilian & Riley, Michael, 2001. "A combinatorial approach to level of repair analysis," European Journal of Operational Research, Elsevier, vol. 129(2), pages 242-251, March.
    3. Haritha Saranga & U. Kumar, 2006. "“Optimization of aircraft maintenance/support infrastructure using genetic algorithms—level of repair analysis”," Annals of Operations Research, Springer, vol. 143(1), pages 91-106, March.
    4. Rommert Dekker & Ralph Wildeman & Frank Duyn Schouten, 1997. "A review of multi-component maintenance models with economic dependence," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 45(3), pages 411-435, October.
    5. Murthy, D. N. P. & Solem, O. & Roren, T., 2004. "Product warranty logistics: Issues and challenges," European Journal of Operational Research, Elsevier, vol. 156(1), pages 110-126, July.
    6. Craig C. Sherbrooke, 1968. "Metric: A Multi-Echelon Technique for Recoverable Item Control," Operations Research, INFORMS, vol. 16(1), pages 122-141, February.
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    Cited by:

    1. Yazdekhasti, Amin & sharifzadeh, Shila & Ma, Junfeng, 2022. "A two-echelon two-indenture warranty distribution network development and optimization under batch-ordering inventory policy," International Journal of Production Economics, Elsevier, vol. 249(C).
    2. R. Basten & M. Heijden & J. Schutten & E. Kutanoglu, 2015. "An approximate approach for the joint problem of level of repair analysis and spare parts stocking," Annals of Operations Research, Springer, vol. 224(1), pages 121-145, January.
    3. Erhun Özkan & Geert-Jan Houtum & Yasemin Serin, 2015. "A new approximate evaluation method for two-echelon inventory systems with emergency shipments," Annals of Operations Research, Springer, vol. 224(1), pages 147-169, January.
    4. Basten, R.J.I. & van der Heijden, M.C. & Schutten, J.M.J., 2011. "A minimum cost flow model for level of repair analysis," International Journal of Production Economics, Elsevier, vol. 133(1), pages 233-242, September.
    5. Basten, R.J.I. & van der Heijden, M.C. & Schutten, J.M.J., 2011. "Practical extensions to a minimum cost flow model for level of repair analysis," European Journal of Operational Research, Elsevier, vol. 211(2), pages 333-342, June.
    6. Izack Cohen & Morris A. Cohen & Elad Landau, 2017. "On sourcing and stocking policies in a two-echelon, multiple location, repairable parts supply chain," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(6), pages 617-629, June.
    7. Basten, R.J.I. & van der Heijden, M.C. & Schutten, J.M.J., 2012. "Joint optimization of level of repair analysis and spare parts stocks," European Journal of Operational Research, Elsevier, vol. 222(3), pages 474-483.
    8. Ma, N., 2014. "Optimal scope of supply chain network & operations design," Other publications TiSEM e6187708-b664-44bf-aef8-f, Tilburg University, School of Economics and Management.

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