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The impact of transportation delays on repairshop capacity pooling and spare part inventories

Pedram Sahba and BalcIog[small tilde]lu, BarIs

European Journal of Operational Research, 2011, vol. 214, issue 3, 674-682

Abstract: In this paper, to serve different fleets of machines at different locations, we study whether repair shop pooling is more cost effective than having dedicated on-site repair shops for each fleet. When modeling the former alternative, we take transportation delays and related costs into account and represent it as a closed queueing network. This allows us to include on-site spare-part inventories that operate according to a continuous-review base-stock policy. We obtain the steady-state distribution of components at each location and the cost of the system with a pooled repair shop by applying the Mean-Value Analysis technique. Our numerical findings indicate that when transportation costs are reasonable, repair shop pooling is a better alternative.

Keywords: Spare; parts; Multiple; finite-population; queueing; systems; Transportation; delays; Mean-Value; Analysis (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:214:y:2011:i:3:p:674-682

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European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

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