 Integrated maintenance and spare part optimization for moving assetsAyse Sena Eruguz, Tarkan Tan and Geert-Jan van Houtum IISE Transactions, 2018, vol. 50, issue 3, 230-245 Abstract: We consider an integrated maintenance and spare part optimization problem for a single critical component of a moving asset for which the degradation level is observable. Degradation is modeled as a function of the current operating mode, mostly dictated by the actual location of the moving asset. The spare part is stocked at the home base that the moving asset eventually visits. Alternatively, the spare part can be stocked on-board the moving asset to prevent costly expedited deliveries. The costs associated with spare part deliveries and part replacements depend on the operating mode. Our objective is to minimize the expected total discounted cost of spare part deliveries, part replacements, and inventory holding over an infinite planning horizon. We formulate the problem as a Markov decision process and characterize the structure of the optimal policy, which is shown to be a bi-threshold policy in each operating mode. Our numerical experiments show that the cost savings obtained by the integrated optimization of spare part inventory and part replacement decisions are significant. We also demonstrate the value of the integrated approach in a case study from the maritime sector. Date: 2018 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:uiiexx:v:50:y:2018:i:3:p:230-245 Ordering information: This journal article can be ordered from DOI: 10.1080/24725854.2017.1312037 Access Statistics for this article IISE Transactions is currently edited by Jianjun Shi More articles in IISE Transactions from Taylor & Francis Journals |
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