Determining overtime policies for a repair shop

Gary D Scudder and Richard Chua

Omega, 1987, vol. 15, issue 3, 197-206

Abstract: Problems arise when a repair shop with a fixed capacity has to cope with fluctuations in the arrivals of failed assemblies. The effective use of priority scheduling rules and labor assignment rules will enable the repair shop to work efficiently but only to the extent of the repair capacity of the shop. Increasing the number of spares in stock to accommodate these short-term fluctuations would be costly in the long run. In order to maintain a certain level of service, the repair shop often needs to resort to overtime. This paper examines various overtime policies, namely, proactive and reactive overtime policies, under various failure distributions and budget constraints for spares. The findings show that reactive overtime policies generally perform better than proactive overtime policies under the conditions tested. Benefit-cost ratio curves are developed for these overtime policies which illustrate the stochastic interaction effects of the priority scheduling rule, spares budget, and failure arrival distribution.

Date: 1987
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