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Publication . Article . Other literature type . 2021

Spare parts inventory routing problem with transshipment and substitutions under stochastic demands

Fatima Ezzahra Achamrah; Fouad Riane; Sabine Limbourg;
Open Access
Published: 01 Aug 2021 Journal: Applied Mathematical Modelling, volume 101, pages 309-331 (issn: 0307-904X, Copyright policy )
Publisher: Elsevier BV
Abstract

Abstract We study a two-level spare parts supply chain in which a manufacturer supplies a central warehouse (CW) with original equipment manufacturer (OEM) and replacement or pattern parts (PP). The CW, distantly located from the manufacturer, distributes both OEM parts and PP to a given number of depots facing stochastic demands. The demand for spare parts is intermittent, exhibiting an infrequent rate and extreme dispersal over time periods. Along with lateral transshipment, PP can be used as substitutes for the OEM parts to sidestep shortage at depots. Assuming that emergency shipments are significantly longer and more expensive, we aim at underlining the relative effectiveness of such a new spare parts inventory management policy. A mixed-integer linear programming model is proposed to solve the inventory routing problem with transshipment and substitution under stochastic demands. The objective is to minimise costs of holding inventory, transportation which includes regular shipment and transshipment, substitution and lost sales. To solve the problem, Sample Average Approximation method is used. Based on empirical goodness-of-fit tests, three demand patterns are studied: Poisson distribution, stuttering Poisson distribution and negative binomial distribution. The model is tested on well-known benchmark instances generated for multi-product multi-vehicle IRP. Computational experiments highlight the benefits of promoting transshipment and substitution on the overall supply chain performance. Results also suggest insights, which are of interest to professionals who are willing to develop new decision support models for the most efficient management of such items.

Subjects by Vocabulary

Microsoft Academic Graph classification: Spare parts management Spare part Transshipment (information security) Supply chain Negative binomial distribution Original equipment manufacturer Demand patterns Computer science Linear programming Operations research

ACM Computing Classification System: ComputingMilieux_MISCELLANEOUS

Subjects

Applied Mathematics, Modeling and Simulation, Routing, Transshipment, Substitution, Spare parts management, Sample average approximation, Business & economic sciences, Quantitative methods in economics & management, Sciences économiques & de gestion, Méthodes quantitatives en économie & gestion, [MATH]Mathematics [math], [INFO]Computer Science [cs]

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