Multi-item spare parts systems with lateral transshipments and waiting time constraints

Wong, Hartanto; Houtum, van Gjjan Geert-Jan; Cattrysse, Dirk; Oudheusden, van D

doi:10.1016/j.ejor.2005.01.018

Cited by 123 publications

(81 citation statements)

References 33 publications

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“…Experimentation by the authors including from two to five plants shows that pooling leads to savings between 31% and 58.78%. Other works in lateral transshipments under emergency situations are reported in Archibald [31], Wong et al [32] and Alfredsson and Verrijdt [33].…”

Section: Multiple Plants Planning and Risk Poolingmentioning

confidence: 97%

Inventory management of spare parts in an energy company

Guajardo

Rönnqvist

Halvorsen

et al. 2015

Journal of the Operational Research Society

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We address a problem of inventory management of spare parts in the context of a large energy company, producer of oil and gas. Spare parts are critical for assuring operational conditions in offshore platforms. About 200,000 different items are held in several inventory plants. The inventory system implemented at the company corresponds to a min-max system. The control parameters are decided based mainly on the expert judgment of the planners. Also, though the inventory plants can in practice be supplied from each other, the inventory planning is performed separately by the plant planners. This is because of different ownership structures where the studied company has the operative responsibility. The company is pursuing a system in which all planners conform to the same inventory management approach and evaluation, as well as being more cost efficient. Our work focuses on supporting this goal. We apply methods to decide the inventory control parameters for this system under a service level constraint. The methodology we use distinguishes unit-size and lot-size demand cases. We perform computational experiments to find control parameters for a sample of items. After the control parameters are found, we use them to explore the impact of risk pooling among the plants and inaccuracy arising from duplicate item codes. Key words:Email addresses: mario.guajardo@nhh.no corresponding author tel.: +47 55959834 fax: +47 55959650 (Mario Guajardo), mikael.ronnqvist@nhh.no (Mikael Rönnqvist), amaha@statoil.com (Ann Mari Halvorsen), svkal@statoil.com (Svein Inge Kallevik) Preprint submitted to NHH Discussion Series June 6, 2012Inventory of spare parts; risk pooling; duplicates; inventory inaccuracy; OR in the oil and gas sector.

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Section: Multiple Plants Planning and Risk Poolingmentioning

confidence: 97%

Inventory management of spare parts in an energy company

Guajardo

Rönnqvist

Halvorsen

et al. 2015

Journal of the Operational Research Society

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“…The analytical LT models have progressively been upgraded in the literature (Archibald, 2007;Wong, Cattrysse, & Oudheusden, 2005;Wong, Van Houtum, Cattrysse, & Oudheusden, 2006). However, this advancement in the LT research field also added structural complexities that can be too cumbersome for deriving the optimal solutions, especially when elements of the demand and supply are modeled as stochastic processes.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In recent comprehensive overviews of LT (Lee, Jung, & Jeon, 2007;Paterson, Kiesmuller, Teunter, & Glazebrook, 2011;Seidscher & Minner, 2013;Wong et al, 2006), two major types of transshipments are identified on the basis of timing of the transshipments. They are proactive and reactive transshipments.…”

Section: Literature Reviewmentioning

confidence: 99%

A case-based roadmap for lateral transshipment in supply chain inventory management

2016

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Manufacturers and wholesalers are increasingly cost conscious in response to today's hyper-competitive environment. Lateral transshipment (LT) has been proposed as a viable solution to drive total inventory costs down whilst increasing customer service level. Our study proposes five LT decision rules with a case-based roadmap to guide professional inventory management. Results of this large fast moving consumer goods case study company demonstrate superior inventory management performance with implementing a combined reactive and proactive LT strategy to determine whether to transship emergency stock from other warehouse or to backorder from suppliers, size of transshipment, favorite wholesaler, preferred supplier, and extra quantity for preventive LT, which are the key LT decision points among the professional supply chain management practitioners.

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“…Several papers have been written which further expand these ideas by relaxing or tightening some constraints such as making repair capacity finite (Jung et al, 2003), using lost sales rather than backordering (Dada, 1992) or considering a model where backorders have to be minimized rather than costs (Sherbrooke, 1986). In addition to this, inventory systems that supply more than one type of item are investigated by papers such as Wong et al (2006b) and Kranenburg and van Houtum (2009). The latter examines the benefits of partial pooling, where only certain transshipments are performed.…”

Section: Introductionmentioning

confidence: 99%

Enhanced lateral transshipments in a multi-location inventory system

Paterson

Teunter

Glazebrook

2012

European Journal of Operational Research

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a b s t r a c tIn managing an inventory network, two approaches to the pooling of stock have been proposed. Reactive transshipments respond to shortages at a location by moving inventory from elsewhere within the network, while proactive stock redistribution seeks to minimize the chance of future stockouts. This paper is the first to propose an enhanced reactive approach in which individual transshipments are viewed as an opportunity for proactive stock redistribution. We adopt a quasi-myopic approach to the development of a strongly performing enhanced reactive transshipment policy. In comparison to a purely reactive approach to transshipment, service levels are improved while a reduction in safety stock levels is achieved. The aggregate costs incurred in managing the system are significantly reduced, especially so for large networks. Moreover, an optimal policy is determined for small networks and it is shown that the enhanced reactive policy substantially closes the gap to optimality.

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Multi-item spare parts systems with lateral transshipments and waiting time constraints

Cited by 123 publications

References 33 publications

Inventory management of spare parts in an energy company

Inventory management of spare parts in an energy company

A case-based roadmap for lateral transshipment in supply chain inventory management

Enhanced lateral transshipments in a multi-location inventory system

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