A redistribution model with minimum backorders of spare parts: A proposal for the defence sector

Juan Carlos García-Benito and María-Luz Martín-Peña

European Journal of Operational Research, 2021, vol. 291, issue 1, 178-193

Abstract: The operational availability of systems is the main performance measure in maintenance, repair and overhaul organisations focused on fleet maintenance. In these organisations, spare part inventory management is a crucial issue. Two key aspects set contexts such as the defence sector apart. First, shipment times between secondary warehouses are longer than shipment times between the main warehouse and any given secondary warehouse. Second, the cost of the shipment is fixed, so each new delivery incurs no extra cost. To investigate such a scenario, this study examines how best to redistribute stock amongst several secondary warehouses in a two-echelon network. The supply response time for spare parts due to backorders must be minimised to maximise the fleet's operational availability. For each spare part, the goal is to find the optimal allocation to each warehouse to minimise the expected waiting time in repair shops. A stochastic redistribution model is developed. Extensive numerical examples from real cases in Spanish Army are used to demonstrate the model's effectiveness. The results are satisfactory in terms of the number of positive cases, the reduction in waiting days and solution accuracy. The approach is valid in most cases, and it is particularly suitable in situations with non-negligible transport times where the organisation's own vehicles ply regular routes. The model is designed for the defence sector, thereby tackling a real problem, although it is equally applicable to other maintenance, repair and overhaul environments with similar characteristics. The proposed model offers an innovative application to operations research, describing a novel way to solve a real-life problem.

Keywords: (O) distribution; Spare parts; Two-echelon model; Lateral transshipment; MRO (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:291:y:2021:i:1:p:178-193

DOI: 10.1016/j.ejor.2020.09.014

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