Spare parts management considering new sales

Haitao Liao, Peng Wang, Tongdan Jin, Sunny Repaka

Research output: Chapter in Book/Report/Conference proceedingConference contribution

6 Scopus citations

Abstract

It is difficult to control spare parts inventory of a product to meet certain maintenance demand. The problem becomes more challenging when the installed base of the product changes over time. Under this situation, the inventory value needs to be adjusted according to the resulting non-stationary maintenance demand. This challenge is usually encountered when a manufacturer starts selling a new product and agrees to provide spare parts for maintenance. In this paper, a special case involving a new non-repairable product with a single spare pool is considered. It is assumed that the rate of new sales of the product is constant, and the product's failure time follows the Weibull distribution. The mathematical model for the resulting maintenance demand is formulated and calculated through simulation. Based on the maintenance demand, a dynamic (Q, r) - (lotsize/reorder-point) restocking policy is formulated and solved using a multi-resolution approach. Finally, a numerical example with the objective of minimizing the inventory cost under a service level constraint is provided to demonstrate the proposed methodology in practical use.

Original languageEnglish (US)
Title of host publication2008 Proceedings - Annual Reliability and Maintainability Symposium, RAMS 2008
DOIs
StatePublished - Dec 1 2008
Event54th Annual Reliability and Maintainability Symposium, RAMS 2008 - Las Vegas, NV, United States
Duration: Jan 28 2008Jan 31 2008

Publication series

NameProceedings - Annual Reliability and Maintainability Symposium
ISSN (Print)0149-144X

Other

Other54th Annual Reliability and Maintainability Symposium, RAMS 2008
CountryUnited States
CityLas Vegas, NV
Period1/28/081/31/08

Keywords

  • Maintenance demand
  • New sales
  • Optimization
  • Spare parts management

ASJC Scopus subject areas

  • Safety, Risk, Reliability and Quality
  • Mathematics(all)
  • Computer Science Applications

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  • Cite this

    Liao, H., Wang, P., Jin, T., & Repaka, S. (2008). Spare parts management considering new sales. In 2008 Proceedings - Annual Reliability and Maintainability Symposium, RAMS 2008 [4925847] (Proceedings - Annual Reliability and Maintainability Symposium). https://doi.org/10.1109/RAMS.2008.4925847