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Inventory control in a spare parts distribution system with emergency stocks and pipeline information
Swedish National Road and Transport Research Institute, Traffic and road users, Traffic safety, society and road-user.
Lunds Universitet.
Eindhoven University of Technolog.
Gordian Logistic Experts.
2015 (English)In: Manufacturing & Service Operations Management, ISSN 1523-4614, E-ISSN 1526-5498, Vol. 17, no 2, 142-156 p.Article in journal (Refereed) Published
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Text
Abstract [en]

Motivated by collaboration with a global spare parts service provider, we consider a two-echelon inventory system with multiple local warehouses, a so-called support warehouse, and a central warehouse with ample capacity. In case of stock-outs, the local warehouses can receive emergency shipments from the support warehouse or the central warehouse at an extra cost.

Our focus is on using information on orders in the replenishment pipeline, i.e., pipeline information, to achieve cost-efficient policies for requesting emergency shipments. We introduce a policy where the request for an emergency shipment is based on the time until an outstanding order will reach the stock point considered. The goal is to determine how long one should wait for stock in the replenishment pipeline before requesting an emergency shipment, and the cost effects of using pipeline information in this manner. The analysis utilizes results from queuing theory and provides a decomposition technique for optimizing the policy parameters that reduces the complex multiechelon problem to more manageable single-echelon problems. The performance of our policy indicates that there can be a significant benefit in using pipeline information.

Place, publisher, year, edition, pages
2015. Vol. 17, no 2, 142-156 p.
Keyword [en]
Delivery, Storage, Efficiency
National Category
Business Administration Transport Systems and Logistics
Research subject
SAB, Qb Managerial economics
Identifiers
URN: urn:nbn:se:vti:diva-9295DOI: 10.1287/msom.2014.0508ISI: 000355194800002ScopusID: 2-s2.0-84928994253OAI: oai:DiVA.org:vti-9295DiVA: diva2:908660
Available from: 2016-03-03 Created: 2016-03-02 Last updated: 2016-08-24Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf