IFAC PapersOnLine 51-11 (2018) 968–973
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Peer review under responsibility of International Federation of Automatic Control.
10.1016/j.ifacol.2018.08.482
© 2018, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved.
1. INTRODUCTION
Traditionally, the literature on Spare Parts (SPs) has been
focused on both understanding the behavior of parts and
developing techniques to properly manage them. According
to literature and practitioners, managing SPs tends to be
substantially different to other items (e.g., productive
supplies, raw materials, commodities), due to the specific
features that characterize their behavior (Huiskonen, 2001;
Cavalieri et al., 2008; Martin et al., 2010; Wagner et al.,
2012). But, extending the traditional focus to other issues and
decisions, it is possible to find different relationships that
impact the Spare Parts Management (SPM) decision process.
Amon others, Supply Chain (SC) issues have been typically
excluded from the analysis or assumed as given and fixed
(Huiskonen, 2001; Wagner, et al., 2002, Martin, et al., 2010)
in the viewpoint of industrial end-user sites (i.e., those that
needs spare parts for the assets installed in their sites).
A relevant concern that must be considered into SPM is the
underlying Supply Chain Network (SCN) that supports the
SPs operations (e.g., transportation, inventories,
warehousing). This paper analyzes the relevance of
integrating Spare Parts Supply Chain Network (SP-SCN)
design issues with traditional SPM. Optimization is focused
on the SP warehouse location, consumption points
assignment and inventory control decisions while minimizing
the total system cost, consisting of operation and setting fixed
costs, transportation costs, and inventory costs. For these
purposes, it is assumed that spare part consumption points are
the end of the SCN (i.e., assets in the industrial plant located
at the end-user site associated with production activities that
consume SP for replacements purposes when facing
preventive maintenance activities or failure events).
One of the focuses of this paper is to establish and discuss
some general relationships among SPM, SP Inventory
Management, SCN and the underlying design problem.
Additionally, this paper presents a generic single-commodity
modeling structure to optimize the SP-SCN that considers
simultaneously warehouse location and inventory control
decisions. This structure aids to focus on the relevant issues
that affect and must be considered on the specific models. In
general, it is possible to address two relevant sets of
decisions, one set related to the SCN design decisions and
other set related to the Inventory Control Policies (ICPs)
considered for managing the SP inventories across the SP-
SCN. Naturally, the specific models, derived from the generic
model, may consider different network structures and diverse
suitable ICPs. Particularly, the basic structure considered into
the generic optimization model is consistent with the standard
and widely studied Facility Location Problems (FLPs)
structure. Subsequently, three ICPs commonly adopted into
SPs context are considered to specify the generic model,
yielding three particular network optimization models. Notice
that, these models belong to the family of Inventory Location
Problems (ILPs) since they integrate warehouse location and
inventory control decisions and costs (Erlebacher and Meller,
2000; Daskin, et al., 2002; Miranda and Garrido, 2004).
Finally, a further discussion is made going deeper into the
relationships between the mathematical models, the SPM and
the SP-SCN. Consequently, a research agenda is presented
considering different features that can be integrated into the
mathematical models.
Keywords: Spare Parts Management; Supply Chain Network Design; Supply Chain Management;
Network Optimization; Inventory Control; Inventory Location Problem
Abstract: Traditional literature on Spare Parts Management from industrial end-user sites has not
focused on the underlying Supply Chain Network. Thus, this paper analyzes the relevance of integrating
Supply Chain Network design with traditional Spare Parts Management. With this aim, the paper
proposes a network optimization modeling structure, with simultaneous decisions for warehouse
locations and inventory control, allowing to optimize the Spare Parts Supply Chain Network costs.The
model is specified for three traditional and commonly used Inventory Control Policies suitable for a
variety of Spare Parts (i.e., (s, Q), (R, s, S) and (S-1, S)). The proposed integrated approach yields Spare
Parts Supply Chain system performance improvements.
*Politecnico di Milano, Milano, 20156 MI, Italy
(e-mail: franciscojavier.tapia@polimi.it, irene.roda@polimi.it, marco.macchi@polimi.it).
**Pontificia Universidad Católica de Valparaíso, Valparaíso, 2340025, Chile
(e-mail: pablo.miranda@pucv.cl, orlando.duran@pucv.cl).
*** University of Portsmouth, Portsmouth, PO1 3DE UK, United Kingdom, Visiting Researcher
Tapia-Ubeda, Francisco, J.*
,
** Miranda, Pablo, A.**
,
*** Roda, Irene*
Macchi, Marco* Durán, Orlando**
An Inventory-Location Modeling Structure for Spare Parts Supply Chain
Network Design Problems in Industrial End-User Sites