Two-Echelon Supply Chain Design for Spare Parts with Time Constraints

supply chain design;spare parts management;response time requirements;base-stock replenishment policy;cutting-planes;queueing;inventory-location;facility location;inventory stocking;mixed-integer programming;Management Sciences

Riaz, Muhammad Waqas

University of Waterloo

关键词: supply chain design;    spare parts management;    response time requirements;    base-stock replenishment policy;    cutting-planes;    queueing;    inventory-location;    facility location;    inventory stocking;    mixed-integer programming;    Management Sciences;   

Others  :  https://uwspace.uwaterloo.ca/bitstream/10012/7914/1/Riaz_MuhammadWaqas.pdf

瑞士|英语

来源: UWSPACE Waterloo Institutional Repository

【 摘 要 】

We consider a single-part, two-echelon supply chain problem for spare parts. The network consists of a single manufacturing plant, a set of service centers (SCs) and a set of customers. Both echelons keep spare parts using the base-stock replenishment policy. The plant behaves as an M/M/1 queueing system and has limited production and storage capacity.Demand faced by each SC follows an independent Poisson process. The problem is to determine optimal location-allocation and optimal base-stock levels at both echelons while satisfying the target service levels and customer preferences of SCs. We develop a mixed integer non-linear programming model and use cutting-plane method to optimize the inventory-location decisions.We present an exact solution procedure for the inventory stocking problem and demonstrate the limitations of using traditional inventory models like METRIC-like and Approximate in case of high utilization rates. We show the effectiveness of our proposed cutting-plane algorithm and provide important managerial insights for spare parts management.