Two-Echelon Supply Chain Design for Spare Parts with Time Constraints

dc.contributor.authorRiaz, Muhammad Waqas
dc.date.accessioned2013-09-25T17:35:07Z
dc.date.available2013-09-25T17:35:07Z
dc.date.issued2013-09-25T17:35:07Z
dc.date.submitted2013
dc.description.abstractWe consider a single-part, two-echelon supply chain problem for spare parts. The network consists of a single manufacturing plant, a set of service centers (SCs) and a set of customers. Both echelons keep spare parts using the base-stock replenishment policy. The plant behaves as an M/M/1 queueing system and has limited production and storage capacity. Demand faced by each SC follows an independent Poisson process. The problem is to determine optimal location-allocation and optimal base-stock levels at both echelons while satisfying the target service levels and customer preferences of SCs. We develop a mixed integer non-linear programming model and use cutting-plane method to optimize the inventory-location decisions. We present an exact solution procedure for the inventory stocking problem and demonstrate the limitations of using traditional inventory models like METRIC-like and Approximate in case of high utilization rates. We show the effectiveness of our proposed cutting-plane algorithm and provide important managerial insights for spare parts management.en
dc.identifier.urihttp://hdl.handle.net/10012/7914
dc.language.isoenen
dc.pendingfalseen
dc.publisherUniversity of Waterlooen
dc.subjectsupply chain designen
dc.subjectspare parts managementen
dc.subjectresponse time requirementsen
dc.subjectbase-stock replenishment policyen
dc.subjectcutting-planesen
dc.subjectqueueingen
dc.subjectinventory-locationen
dc.subjectfacility locationen
dc.subjectinventory stockingen
dc.subjectmixed-integer programmingen
dc.subject.programManagement Sciencesen
dc.titleTwo-Echelon Supply Chain Design for Spare Parts with Time Constraintsen
dc.typeMaster Thesisen
uws-etd.degreeMaster of Applied Scienceen
uws-etd.degree.departmentManagement Sciencesen
uws.peerReviewStatusUnrevieweden
uws.scholarLevelGraduateen
uws.typeOfResourceTexten

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