Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

Durán, Orlando; Afonso, Paulo; Victor, J. Charles; Carvajal, Karina

doi:10.3390/math11153316

Cited by 3 publications

(2 citation statements)

References 51 publications

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“…Total Cost of Ownership (TCO) is a cost management method that considers the sum of all costs associated with a company's assets during its life cycle. In other words, it can be understood as all the costs associated with the acquisition, use, and maintenance of a product, whether it is a good or service (Durán et al, 2023; RODA; MACCHI; ALBANESE, 2020).…”

Section: Total Cost Of Ownershipmentioning

confidence: 99%

Tools for cost management

Silva,

Leite

2024

Revista PO: R. Eletr. de Eng. de Produção e Correlatas

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This article aims to provide an overview of the literature in which cost assessment methods are currently used, and their characteristics and limitations are also pointed out. To achieve the proposed objectives, a Systematic Literature Review (RSL) was conducted. It was possible to identify the tools discussed in the bibliographic portfolio studied, namely: life cycle costing, target costing, the total cost of ownership, activity-based costing, variable costing, and mathematical models, as well as the difficulties in implementing these tools in different application contexts. It has also been noted that multiple tools are often employed in integrated methodologies to mitigate the inherent limitations of individual models when treated in isolation. The significance of this article resides in its contribution to the discourse on the evolution of cost management tools and their application within integrated approaches, particularly in addressing the typical challenges encountered in emerging business models.

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Section: Total Cost Of Ownershipmentioning

confidence: 99%

Tools for cost management

Silva,

Leite

2024

Revista PO: R. Eletr. de Eng. de Produção e Correlatas

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“…With the estimated demands, they compute the EOQs and the reorder points for the required parts inventory using Markov chains, taking into account that this probability can decrease according to time. Durán et al [30] introduced a long-term costing model that incorporates a capacity analysis, reliability functions, and risk factors for the cost management of logistics activities, particularly in MRO structures for spare parts management. Baghizadeh [31] introduced an inventory model for essential spare parts based on a Markov chain process model for the situation of supplier interruption.…”

Section: Literature Reviewmentioning

confidence: 99%

A Heuristic Model for Spare Parts Stocking Based on Markov Chains

Pacheco-Velázquez,

Robles-Cárdenas,

Juárez Ordóñez

et al. 2023

Mathematics

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Spare parts management has gained significant attention in recent years due to the considerable costs associated with backorders or excess inventory. This article addresses the challenge of determining the optimal number of spare parts to stock, assuming that the parts can be repaired. When an item fails, it is promptly sent for repair in a workshop. The time between failures and the repair time are assumed to follow an exponential distribution, although it should be noted that the results could be adapted to other distributions as well. This study introduces a heuristic method to find the optimal inventory level that minimizes the total cost, considering holding inventory, backorder, and repair costs. The research offers a valuable decision-making framework for determining the number of spare parts needed to minimize inventory costs, based on just two parameters: (1) the ratio of time to repair and time to failure, and (2) the ratio of the inventory holding cost of a spare part per day to the daily cost of an idle machine. To the best of our knowledge, there are no similar methodologies in the existing literature. The proposed method is straightforward to implement, employing graphs and simple computations. Therefore, it is anticipated to be highly beneficial for practitioners seeking a quick and reliable estimator of the optimal number of spare parts to stock for critical components.

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Defining the required number of spare parts under data constraints

Leyzgold,

Bochkarev

2024

Nadežnostʹ

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Aim. The paper aims to reduce the costs associated with the post-failure downtime of equipment. This is especially relevant for industries such as oil production due to the territorial distribution of the maintained facilities and remote location of spare part storage, which leads to increased time to repair due to the wait for the arrival of the right part or piece of equipment. At the same time, there may be spare parts in stock that will not prove to be useful in the near future due to the irrational content of the stock in storage. Methods. Managing equipment spare parts usually comes down to using probabilistic methods and mathematical models for solving optimization problems, but such methods require data on the technical condition of a facility, cost characteristics, etc., that may not always be available, so a method that does not use such information needs to be developed. Results. A method is proposed for defining the number of spare items using the times-to-failure of same-type items and identifying the predicted probabilities of failures, which allows, in the absence of statistical data on the technical condition of items, minimising the downtime of equipment while waiting for spare parts.

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Cost of Ownership of Spare Parts under Uncertainty: Integrating Reliability and Costs

Cited by 3 publications

References 51 publications

Tools for cost management

Tools for cost management

A Heuristic Model for Spare Parts Stocking Based on Markov Chains

Defining the required number of spare parts under data constraints

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