Inventory optimization for a customer airline in a Performance Based Contract

Riccardo Patriarca, Francesco Costantino, Giulio Di Gravio and Massimo Tronci

Journal of Air Transport Management, 2016, vol. 57, issue C, 206-216

Abstract: The supply of spare parts has a crucial role in the aviation sector, mainly due to the high costs of spare parts and to the strict availability requirements. In a stand-alone scenario, an airline owns the spare parts and manages the maintenance tasks by itself. A new trend consists of not owning the spare parts and delegate the maintenance tasks to an external company, taking advantage of a specific Performance Based Contract (PBC). The PBCs aim to reduce the ownership cost for the customer airline, while ensuring a target system performance. Spare parts become a variable cost for the customer airline and a business income for the maintenance supplier, which is commonly another airline.

Keywords: Spare parts; Aviation; Multi-transportation; Genetic algorithm (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:57:y:2016:i:c:p:206-216

DOI: 10.1016/j.jairtraman.2016.08.005

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