Integrated network design and inventory management in service parts logistics systems

点击翻译按钮获取中文摘要

Service Parts Logistics (SPL) is a part of supply chain management that refers to providing after-sales service (e.g. providing parts and necessary repair on-site upon the breakdown of network servers, medical equipment, or aircraft). SPL industry is currently worth $1.5 trillion worldwide with major sectors growing at 15-20% annually. The major challenge in operating an SPL network is to guarantee a highly responsive service to customers in need (usually within few hours of customer's request). The problem is further complicated by the presence of multiple classes of customers and their quality of service guarantees. The increasing variety of parts and the uncertainty in their demand add to the complexity of the planning process. Furthermore, shrinking life cycle of many products results in a proliferation of parts with infrequent demands. As a result of these conflicting objectives, there arises a number of challenging problems in SPL systems such as designing a network of part stocking facilities, planning inventory ordering policies, and dispatching the required parts from the facility within the manufacturer's network to geographically distributed customers in need. The goal of the proposed program is to develop a variety of mathematical models and solution approaches to understand the interaction and the interdependencies of the network design and inventory decisions in SPL systems. The results and insights from this research will act as a useful decision support tool for the managers in industrial settings, as well as non-commercial enterprises such as the military, in designing and managing their SPL network efficiently.