Spare parts quantity problem under uncertainty - the case of entirely new devices with short life cycle

Abstract

The paper presents a new scenario-based decision rule for the spare parts quantity problem (SPQP) under uncertainty with unknown objective probabilities. The goal of SPQP is to ensure the right number of extra parts at the right place at the right time. In the literature, SPQP is usually regarded as a stochastic problem since the demand for extra parts is treated as a random variable with a known distribution. The optimal stock quantity minimizes the expected loss resulting from buying a given number of parts before potential failures. The novel approach is designed for the purchase of non-repairable spare parts for entirely new seasonal devices, where the estimation of frequencies is complicated because there are no historical data about previous failures. Additionally, the decision maker's knowledge is limited due to the nature of the problem. The new procedure is a three-criteria method. It is based on the Hurwicz and Bayes decision rules and supported with a forecasting stage enabling one to set the scenario with the greatest subjective chance of occurrence. The method takes into account the decision maker's attitude towards risk and the asymmetry of losses connected with particular stock quantities. We assume that the future unit purchase cost of a service part bought after the breakdown is also uncertain and given as an interval parameter. The approach is designed for short life cycle machines.

The Assignment Problem in Human Resource Project Management under Uncertainty

“…In such circumstances, we ought to refer to tools enabling uncertainty modeling (Lin et al 2019;Midler et al 2016;Narayanan et al 2019;Oehmen et al 2020;Pich et al 2002;Singh and Rani 2019;Vats et al 2019). Uncertainty may be defined in many ways (Gaspars-Wieloch 2018); however, in this paper, we assume that it occurs when at least one parameter of the decision problem is not deterministic (Gaspars-Wieloch 2019a, 2019b, 2020b, 2021. Hence, the main motivation of the research is to focus on the assignment problem in the context of totally new projects developed in very dynamic surroundings because such cases are quite frequent nowadays.…”

Scenario planning combined with probabilities as a risk management tool - analysis of pros and cons

“…The fourth example (4) is related to the single-period spare parts quantity problem (SPQP) -an important element of the supply chain risk management (SCRM). SPQP is described for instance in Gaspars-Wieloch (2019c). The SPQP essence is to ensure that the right spare parts and resources are at the right place (where the broken part is) at the right time.…”