Solution techniques for spare parts inventory replenishment policies | |
| Author | Farahani, Mansour V. |
| Call Number | AIT RSPR no. IE-84-7 |
| Subject(s) | Machine parts Inventory control |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | Four different inventory replenishment policies namely, Analytical, Silver-Meal Heuristic, Alternative Heuristic, and Modified E.B.Q are considered for the situation of a deterministic linearly increasing demand. The performance of practical inventory policies for this situation is compared though hypothetical example and their respective shortcomings are discussed. A policy based on the well known Economic Batch Quantity (E.B.Q) suitably modified for linear trend, is shown to give small cost penalties when compared to the analytical solutions. This policy is considered the best solution compared to other two heuristics to use practically. For each policy the cost penalties of ordering earlier and later than optimal replenishment times are calculated. The situation of a deterministic increasing linear trend followed by a period of constant demand is considered. The minimum inventory replenishment cost of four policies namely: optimal policy for phase I followed by optimal policy for phase II, optimal policy (considering both phases as a whole), Silver-Meal Heuristic, and Modified E.B.Q, are compared using hypothetical example and again Modified E.B.Q is shown to give smallest cost penalties. For the case of deterministic linearly decreasing demand a new policy based on Modified E.B.Q is developed and is compared with analytical model with the help of an example. The Modified E.B.Q is shown to be a good alternative for practical applications with very low cost penalties compared to analytical model. Finally, showing a very good performance whiting the considered range for relevant cost and demand pattern parameter values, modified E.B.Q policy is recommended as a method for the whole life cycle of spare parts. An example is used to show the calculation of inventory replenishment times during the horizon length. |
| Year | 1984 |
| Type | Research Study Project Report (RSPR) |
| School | School of Engineering and Technology |
| Department | Department of Industrial Systems Engineering (DISE) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Tabucanon, Mario T. |
| Examination Committee(s) | Fujiwara, Okitsugu ; Tang, John C.S. |
| Scholarship Donor(s) | Government of France |
| Degree | Research Studies Project Report (M. Eng.) - Asian Institute of Technology, 1984 |