Modelling and solving spare parts supply chain network design problems

FRANCISCO JAVIER TAPIA UBEDA, Pablo A. Miranda, Irene Roda, Marco Macchi, Orlando Durán

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

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.

Original languageEnglish
Pages (from-to)5299-5319
Number of pages21
JournalInternational Journal of Production Research
Volume58
Issue number17
DOIs
StatePublished - 1 Sep 2020
Externally publishedYes

Keywords

  • Generalised Benders Decomposition
  • inventory location problems
  • network optimisation
  • spare parts
  • supply chain network design

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