The Repair Kit Problem (RKP) concerns the determination of a set of items taken by a service engineer to perform on-site product support. Such a set is called a kit. Models developed in the literature have always ignored the lead times associated with delivering items to replenish the kit, thereby limiting the practical relevance of the proposed solutions. Motivated by a real life case, we develop a model with positive lead times to control the replenishment quantities of the items in the kit, and study the performance of (s, S) policies under a service objective. The choice for (s, S) policies is made in order to accommodate fixed ordering costs. We present a method to calculate job fill rates with exact expressions, and discuss a heuristic approach to optimize the reorder level and order-up-to level for each item in the kit. The empirical utility of the model is assessed on real world data from an equipment manufacturer and useful insights are offered to after-sales managers.
The Repair Kit Problem with positive replenishment lead times and fixed ordering costs / Prak, Dennis; Saccani, Nicola; Syntetos, Aris; Teunter, Ruud; Visintin, Filippo. - In: EUROPEAN JOURNAL OF OPERATIONAL RESEARCH. - ISSN 0377-2217. - STAMPA. - 261:(2017), pp. 893-902. [10.1016/j.ejor.2017.02.019]
The Repair Kit Problem with positive replenishment lead times and fixed ordering costs
VISINTIN, FILIPPO
2017
Abstract
The Repair Kit Problem (RKP) concerns the determination of a set of items taken by a service engineer to perform on-site product support. Such a set is called a kit. Models developed in the literature have always ignored the lead times associated with delivering items to replenish the kit, thereby limiting the practical relevance of the proposed solutions. Motivated by a real life case, we develop a model with positive lead times to control the replenishment quantities of the items in the kit, and study the performance of (s, S) policies under a service objective. The choice for (s, S) policies is made in order to accommodate fixed ordering costs. We present a method to calculate job fill rates with exact expressions, and discuss a heuristic approach to optimize the reorder level and order-up-to level for each item in the kit. The empirical utility of the model is assessed on real world data from an equipment manufacturer and useful insights are offered to after-sales managers.File | Dimensione | Formato | |
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