Cost adjustment for single item pooling models using a dynamic failure rate: A calculation for the aircraft industry

R. Fritzsche

Transportation Research Part E: Logistics and Transportation Review, 2012, vol. 48, issue 6, 1065-1079

Abstract: This paper presents an analytical model for cost estimation in a single-item, multi-hub (S-1,S) inventory policy-pooling model for high-value spare parts in the aviation industry. The model extends existing, static pooling models by implementing a dynamic failure rate, using a maintenance free operating period (MFOP) as a measurement technique to increase availability of aircraft components. The gained results through a dynamic failure rate show significant effects for a reduction of total costs of ownership and achieving a better operational stock planning, which is demonstrated in a numerical application.

Keywords: Inventory pooling model; Spare parts; Dynamic failure rate; MFOP; Preventive maintenance (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (4)

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DOI: 10.1016/j.tre.2012.04.003

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