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Modelling and solving spare parts supply chain network design problems

Author

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  • Francisco J. Tapia-Ubeda
  • Pablo A. Miranda
  • Irene Roda
  • Marco Macchi
  • Orlando Durán

Abstract

Spare parts are key operational assets in order to minimise unexpected equipment downtimes that may significantly impact a company’s results. The spare parts supply chain network supports the entire spare parts operations management and it is essential to achieve the planned goals. However, most of the traditional literature on spare parts management has not focused on the underlying supply chain network. Thus, this paper studies the integration of supply chain network design and control with traditional spare parts management. In particular, a generic network optimisation modelling structure is proposed, with simultaneous optimisation of warehouse locations and inventory control decisions, allowing minimising the total costs associated with the spare parts supply chain network. The generic model is specified based on three inventory control policies widely employed in the industry, which are suitable for managing a great variety of spare parts, i.e. (s, Q), (R, s, S) and (S-1, S). Furthermore, a solution approach is proposed based on Generalised Benders Decomposition. Finally, numerical results from a real-world application case in the process industry are shown and discussed.

Suggested Citation

  • Francisco J. Tapia-Ubeda & Pablo A. Miranda & Irene Roda & Marco Macchi & Orlando Durán, 2020. "Modelling and solving spare parts supply chain network design problems," International Journal of Production Research, Taylor & Francis Journals, vol. 58(17), pages 5299-5319, September.
  • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:17:p:5299-5319
    DOI: 10.1080/00207543.2020.1720924
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    Cited by:

    1. Usman Ali & Bashir Salah & Khawar Naeem & Abdul Salam Khan & Razaullah Khan & Catalin Iulian Pruncu & Muhammad Abas & Saadat Khan, 2020. "Improved MRO Inventory Management System in Oil and Gas Company: Increased Service Level and Reduced Average Inventory Investment," Sustainability, MDPI, vol. 12(19), pages 1-19, September.
    2. Roberto León & Pablo A. Miranda-Gonzalez & Francisco J. Tapia-Ubeda & Elias Olivares-Benitez, 2024. "An Inventory Service-Level Optimization Problem for a Multi-Warehouse Supply Chain Network with Stochastic Demands," Mathematics, MDPI, vol. 12(16), pages 1-20, August.

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