Modelling and solving spare parts supply chain network design problems

Abstract

Spare parts are key operational assets in order to minimize the unexpected equipment downtimes that may significantly impact the company results.Accordingly, the spare parts supply chain network supports the entire spare parts operations and it is essential to achieve the planned goals. However, traditional literature on spare parts management has not focused on the underlying supply chain network. Thus, this paper studies the integration of supply chain network design and control with traditional spare parts management. In particular, this paper proposes a generic network optimization modelling structure, with simultaneous decisions for warehouse locations and inventory control, allowing to optimize the total costs of the spare parts supply chain network. The generic model is specified based on three inventory control policies widely used in industrial sites, i.e. (s, Q), (R, s, S) and (S-1, S), which are suitable for managing a great variety of spare parts. Furthermore, a decomposition-based solution approach is also proposed based on generalized Benders decomposition. Finally, numerical results obtained from a real-world case of application on the process industry are shown and discussed.

A bi-objective integrated transportation and inventory management under a supply chain network considering multiple distribution networks

“…Sarkar et al [45] considered a complex multi-phase manufacturing system that can control defective production rate automatically. Tapia-Ubeda et al [46] researched incorporating SCN design and control for conventional spare parts operations. They introduced a generic network management method for simultaneously simulating warehouse sites and stock control decisions, thereby reducing the overall expense of the supply chain network of spare parts.…”

Supply chain network optimization for EMU spare parts considering same-model inventory pooling

“…[1] Tapia-Ubeda et al (2020) combined SCN design with traditional SP management, established a general network cost optimization model based on three inventory control strategies, and simultaneously optimized warehouse location and inventory control decisions. [2] Papers directly related to EMU SP management were mainly from China. For instance, Ai (2022) summarized and analyzed EMU maintenance experience, obtaining the consumption rule and specific influencing factors of EMU maintenance SPs.…”

An integrated location-inventory model for a spare part’s supply chain considering facility disruption risk and CO2 emission

“…Despite the effect that spare parts management has on companies' global efficiency, the majority of conventional literature has not concentrated on the underlying supply chain network of spare parts (Tapia-Ubeda, Miranda, Roda, Macchi & Durán, 2020). Consequently, issues related to the supply chain and supply chain network are assumed to be given and fixed for most of the research analysis conducted in the spare parts management literature (Huiskonen, 2001;Martin, Syntetos, Parodi, Polychronakis & Pintelon, 2010;Wagner, Jönke & Eisingerich, 2012;Li, Cheng, Hu, Zhou, Ma & Lim, 2019;Liu, Liu & Deng, 2020).…”

“…Nowadays, the criteria for sustainability and resiliency compel the manufacturing firm to develop an effective spare part's supply chain network to support the production or service operations. The spare part's supply chain network is vital for aircraft manufacturers (Wheatley, 2014), steel pipe product manufacturers (Tapia-Ubeda et al , 2020), semiconductor equipment manufacturers (Şen, Bhatia & Doğan, 2010), etc. The general modeling framework is specified for three inventory control policies, i.e.…”

“…The general modeling framework is specified for three inventory control policies, i.e. (s, Q), (R, s, S), (S-1, S), commonly used in industrial settings for the management of spare parts (Tapia-Ubeda et al, 2020). In this paper, continuous review (s, Q) policy is considered for modeling the spare part's supply chain network.…”