Modeling Multi-Echelon Multi-Supplier Repairable Inventory Systems with Backorders
ABSTRACT
This paper considers an inventory system responsible for repairable equipments located at several operational sites, each in different area. When a failure occurs at the operational site, spare parts are required. We analyze a multiple-supplier inventory system that includes an internal repair shop that offers several modes of repair with different repair times and an external supplier of spare parts. The network model of the problem presented here efficiently solves the problem for deterministic demands that vary over time with backorders taken into account.
This paper considers an inventory system responsible for repairable equipments located at several operational sites, each in different area. When a failure occurs at the operational site, spare parts are required. We analyze a multiple-supplier inventory system that includes an internal repair shop that offers several modes of repair with different repair times and an external supplier of spare parts. The network model of the problem presented here efficiently solves the problem for deterministic demands that vary over time with backorders taken into account.
Cite this paper
nullY. Perlman and I. Levner, "Modeling Multi-Echelon Multi-Supplier Repairable Inventory Systems with Backorders," Journal of Service Science and Management, Vol. 3 No. 4, 2010, pp. 440-448. doi: 10.4236/jssm.2010.34050.
nullY. Perlman and I. Levner, "Modeling Multi-Echelon Multi-Supplier Repairable Inventory Systems with Backorders," Journal of Service Science and Management, Vol. 3 No. 4, 2010, pp. 440-448. doi: 10.4236/jssm.2010.34050.
References
[1] I. J. B. F. Adan, A. Sleptchenko and G. J. J. A. N. van Houtum, “Reducing Costs of Spare Parts Supply Systems via Static Sriorities,” Asia-Pacific Journal of Operational Research, Vol. 26, No. 4, 2009, pp. 559-585. [2] W. Hausman and G. Scudder, “Priority Scheduling Rules for Repairable Inventory Systems,” Management Science, Vol. 28, No. 11, 1982, pp. 1215-1232. [3] Y. Perlman, A. Mehrez and M .Kaspi, “Setting Expediting Repair Policy in a Multi-Echelon Repairable-Item Inventory System with Limited Repair Capacity,” Journal of the Operational Research Society, Vol. 52, 2001, pp. 198-209. [4] A. Sleptchenko, M. C. van der Heijden and A. van Harten, “Using Repair Priorities to Reduce Stock Investment in Spare Part Networks,” European Journal of Operations Research, Vol. 163, 2005, pp. 733-750. [5] S. Minner, “Multiple-supplier Inventory Models in Sup- ply Chain Management: A Review,” International Journal of Production Economics, Vol. 81, 2003, pp. 265-279. [6] P. K. Aggarwal and K. Moinzadeh, “Order Expedition in Multi-echelon Production/Distribution Systems,” IIE Transaction, Vol. 2, No. 2, 1994, pp. 86-96. [7] K. Moinzadeh and P. K. Aggarwal, “An Information Base multi-Echelon Inventory System with Emergency Ord- ers,” Operations Research, Vol. 45, 1997, pp. 694-701. [8] P. Alfredsson and J. Verrijdt, “Modeling Emergency Su- pply Flexibility in a Two Echelon Inventory System,” Management Science, Vol. 45, No. 10, 1999, pp. 1416- 1431. [9] R. Ganeshan, “Managing Supply Chain Inventories: A multiple Retailer, One Warehouse, Multiple Supplier Model,” International Journal of Production Economics, Vol. 59, 1999, pp. 341-354. [10] D. F. Pyke, “Priority Repair and Dispatch Policies for Repairable-Item Logistics Systems,” Naval Research Logistics, Vol. 37, 1990, pp. 1-30. [11] J. Verrijdt, I. Adan and T. de Kok, “A Tradeoff between Repair and Inventory Investment,” IIE Transactions, Vol. 30, 1998, pp. 119-132. [12] A. Sleptchenko, M. C. van der Heijden and A. van Harten, “Effect of Finite Repair Capacity in Multi-Echelon, Multi-Indenture Service Part Supply Systems,” International Journal of Production Economics, Vol. 79, No. 2, 2002, pp. 209-230. [13] Y. Perlman and M. Kaspi, “Centralized Decision of Internal Transfer-Prices with Congestion Externalities for Two Modes of Repair with Limited Repair Capacity,” Journal of the Operational Research Society, Vol. 58, No. 9, 2007, pp. 1178-1184. [14] B. Abdul-Jalbar, J. M. Gutierrez and J. Sicilia, “Single Cycle Policies for the One-Warehouse N-Retailer Inventory/Distribution System,” Omega, Vol. 34, No. 5, 2006, pp. 196-208. [15] A. Federgruen, J. Meissner and M. Tzur, “Progressive Interval Heuristics for Multi-Item Capacitated Lot Sizing Problems,” Operations Research, Vol. 55, No. 3, 2007, pp. 490-502. [16] W. Prager, “On the Caterer Problem,” Management Science, Vol. 3, 1956, pp. 16-23. [17] L. R Ford and D. R. Fulkerson, “Flows in Networks,” Princeton University Press, 1962. [18] S. I. Gass, “Linear Programming: Methods and Applications,” Dover Publications, 2003. [19] H. Lee and C. Billigton, “Material Management in Decentralized Supply Chains,” Operations Research, Vol. 41, 1993, pp. 837-845. [20] D. J. Watts and S.H. Strogatz, “Collective Dynamics of ‘Small World’ Networks,” Nature, Vol. 393, No. 6684, 1998, pp. 440-442. [21] X. Liu, C. Wang, X. Luo and D. Wang, “A Model and Algorithm for Outsourcing Planning,” Proceedings IEEE International Conference on E-Business Engineering ICEBE’05, Beijing, 2005, pp. 1-4. [22] X. Liu and J. Zhang, “A Capacitated Production Planning with Outsourcing: A General Model and Its Algorithm,” Lecture Notes in Computer Science, Vol. 4113, 2006, pp. 997-1002. [23] J. Zheng, “A Modeling Framework for the Planning of Strategic Supply Chains Viewed from Complex Network,” Journal of Service Science& Management, Vol. 2, No. 2, 2009, pp. 129-138.
[1] I. J. B. F. Adan, A. Sleptchenko and G. J. J. A. N. van Houtum, “Reducing Costs of Spare Parts Supply Systems via Static Sriorities,” Asia-Pacific Journal of Operational Research, Vol. 26, No. 4, 2009, pp. 559-585. [2] W. Hausman and G. Scudder, “Priority Scheduling Rules for Repairable Inventory Systems,” Management Science, Vol. 28, No. 11, 1982, pp. 1215-1232. [3] Y. Perlman, A. Mehrez and M .Kaspi, “Setting Expediting Repair Policy in a Multi-Echelon Repairable-Item Inventory System with Limited Repair Capacity,” Journal of the Operational Research Society, Vol. 52, 2001, pp. 198-209. [4] A. Sleptchenko, M. C. van der Heijden and A. van Harten, “Using Repair Priorities to Reduce Stock Investment in Spare Part Networks,” European Journal of Operations Research, Vol. 163, 2005, pp. 733-750. [5] S. Minner, “Multiple-supplier Inventory Models in Sup- ply Chain Management: A Review,” International Journal of Production Economics, Vol. 81, 2003, pp. 265-279. [6] P. K. Aggarwal and K. Moinzadeh, “Order Expedition in Multi-echelon Production/Distribution Systems,” IIE Transaction, Vol. 2, No. 2, 1994, pp. 86-96. [7] K. Moinzadeh and P. K. Aggarwal, “An Information Base multi-Echelon Inventory System with Emergency Ord- ers,” Operations Research, Vol. 45, 1997, pp. 694-701. [8] P. Alfredsson and J. Verrijdt, “Modeling Emergency Su- pply Flexibility in a Two Echelon Inventory System,” Management Science, Vol. 45, No. 10, 1999, pp. 1416- 1431. [9] R. Ganeshan, “Managing Supply Chain Inventories: A multiple Retailer, One Warehouse, Multiple Supplier Model,” International Journal of Production Economics, Vol. 59, 1999, pp. 341-354. [10] D. F. Pyke, “Priority Repair and Dispatch Policies for Repairable-Item Logistics Systems,” Naval Research Logistics, Vol. 37, 1990, pp. 1-30. [11] J. Verrijdt, I. Adan and T. de Kok, “A Tradeoff between Repair and Inventory Investment,” IIE Transactions, Vol. 30, 1998, pp. 119-132. [12] A. Sleptchenko, M. C. van der Heijden and A. van Harten, “Effect of Finite Repair Capacity in Multi-Echelon, Multi-Indenture Service Part Supply Systems,” International Journal of Production Economics, Vol. 79, No. 2, 2002, pp. 209-230. [13] Y. Perlman and M. Kaspi, “Centralized Decision of Internal Transfer-Prices with Congestion Externalities for Two Modes of Repair with Limited Repair Capacity,” Journal of the Operational Research Society, Vol. 58, No. 9, 2007, pp. 1178-1184. [14] B. Abdul-Jalbar, J. M. Gutierrez and J. Sicilia, “Single Cycle Policies for the One-Warehouse N-Retailer Inventory/Distribution System,” Omega, Vol. 34, No. 5, 2006, pp. 196-208. [15] A. Federgruen, J. Meissner and M. Tzur, “Progressive Interval Heuristics for Multi-Item Capacitated Lot Sizing Problems,” Operations Research, Vol. 55, No. 3, 2007, pp. 490-502. [16] W. Prager, “On the Caterer Problem,” Management Science, Vol. 3, 1956, pp. 16-23. [17] L. R Ford and D. R. Fulkerson, “Flows in Networks,” Princeton University Press, 1962. [18] S. I. Gass, “Linear Programming: Methods and Applications,” Dover Publications, 2003. [19] H. Lee and C. Billigton, “Material Management in Decentralized Supply Chains,” Operations Research, Vol. 41, 1993, pp. 837-845. [20] D. J. Watts and S.H. Strogatz, “Collective Dynamics of ‘Small World’ Networks,” Nature, Vol. 393, No. 6684, 1998, pp. 440-442. [21] X. Liu, C. Wang, X. Luo and D. Wang, “A Model and Algorithm for Outsourcing Planning,” Proceedings IEEE International Conference on E-Business Engineering ICEBE’05, Beijing, 2005, pp. 1-4. [22] X. Liu and J. Zhang, “A Capacitated Production Planning with Outsourcing: A General Model and Its Algorithm,” Lecture Notes in Computer Science, Vol. 4113, 2006, pp. 997-1002. [23] J. Zheng, “A Modeling Framework for the Planning of Strategic Supply Chains Viewed from Complex Network,” Journal of Service Science& Management, Vol. 2, No. 2, 2009, pp. 129-138.