An EOQ-Based Spare Parts Network Design

Brecht Landrieux () and Nico Vandaele ()
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Brecht Landrieux: Katholieke Universiteit Leuven
Nico Vandaele: Katholieke Universiteit Leuven

A chapter in Handbook of EOQ Inventory Problems, 2014, pp 157-177 from Springer

Abstract: Abstract The aim of this chapter is to combine two types of problems: a facility location problem, that determines where a facility should be set up in order to serve a set of customers, and a EOQ-based spare parts inventory problem, which seeks to determine the optimal stocking levels of a collection of spare parts. The theoretical findings are practiced on a case for projectors of a Belgian Digital Cinema Projector producer, serving customers located all over the world. The goal is to minimize the total costs under four scenarios, which differ mainly in terms of SLA’s and modes of transport. The most remarkable difference between these total costs is related to the number of opened facilities, the safety stock that is required, and the transportation modes that can be used in the considered scenario.

Keywords: Geographic Information System; Service Level Agreement; Spare Part; Facility Location Problem; Transportation Mode (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-1-4614-7639-9_8

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