Bayesian degradation modelling for spare parts inventory management

2020 ◽  
Vol 32 (1) ◽  
pp. 31-49 ◽  
Author(s):  
Cesar Ruiz ◽  
Edward Pohl ◽  
Haitao Liao
Keyword(s):  
Inventory Management ◽  
Optimal Solution ◽  
Planning Horizon ◽  
Degradation Process ◽  
Spare Parts ◽  
Optimal Time ◽  
Model Parameters ◽  
Stochastic Dynamic ◽  
Spare Parts Management ◽  
Spare Parts Inventory

Abstract Decision makers in various sectors, such as manufacturing and transportation, strive to minimize downtime costs. Often, brief-planned stoppage times allow for changes in shifts and line configurations and longer periods are scheduled for major repairs. It is quite important to proactively make use of these downtimes to reduce the costs of unexpected downtimes due to failures. Among many aspects, the availability of spare parts significantly affects the operational costs of such systems. Current sensor technologies enable the condition monitoring of critical components and degradation-based spare parts management. This paper focuses on Bayesian degradation modelling for spare parts inventory management for a new system. We propose a stochastic dynamic program to minimize the expected spare parts inventory cost for a fixed planning horizon. A numerical example illustrates the value of Bayesian analysis in this management setting. The proposed methodology finds the optimal time between long stoppages and optimal spare parts order quantity when the prior information about the degradation process is accurate. The methodology can be used to analyse the sensitivity of the optimal solution to changes in the accuracy and bias of the prior distributions of the model parameters, the cost structure and the number of machines in the system.

Spare parts inventory management: a new hybrid approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leandro Reis Muniz ◽  
Samuel Vieira Conceição ◽  
Lásara Fabrícia Rodrigues ◽  
João Flávio de Freitas Almeida ◽  
Tãssia Bolotari Affonso
Keyword(s):  
Inventory Management ◽  
Hybrid Approach ◽  
Spare Parts ◽  
Mining Company ◽  
Content Type ◽  
Mineral Sector ◽  
Spare Parts Management ◽  
Spare Parts Inventory ◽  
Total Inventory ◽  
Criticality Analysis

PurposeThe purpose of this paper is to present a new hybrid approach based on criticality analysis and optimisation to deal with spare parts inventory management in the initial provisioning phase in the mining industry. Spare parts represent a significant part of mining companies' expenditures, so it is important to develop new approaches to reduce the total inventory value of these items.Design/methodology/approachThis hybrid approach combines qualitative and quantitative methods based on VED (vital, essential and desirable) analysis, analytical hierarchical process (AHP), and e-constraint optimisation method to obtain the spare parts to be stocked. The study was applied to a large mining company. The mineral sector was chosen due to the great importance to the emerging Brazilian economy and the lack of researches in this sector. In addition, the spare parts have a relevant weight on the total inventory cost.FindingsPresent a novel approach combining multi-objective optimisation and multi-criteria evaluation approaches to tackle the inventory decision in spare parts management. This work also defines and classifies relevant criteria for spare parts management in the mineral sector validated by specialists. The proposed approach achieves an average increase of 20.2% in the criticality and 16.6% in the number of items to be stocked compared to the historical data of the surveyed company.Research limitations/implicationsThis paper applies the proposed approach to a mining company in Brazil. Future research in other companies or regions should analyse the adequacy of the criticality criteria, hierarchy and weights adopted in this paper.Practical implicationsThe proposed approach is useful for mining industries that deal with a large variety of resource constraints as it helps in formulating appropriate spare part strategies to rationalise financial resources at both tactical and strategic levels.Originality/valueThe paper presents a new hybrid method combining the AHP a multi-criteria decision making (MCDM) approach coupled with e-constraint optimisation to deal with spare parts inventory management allowing for a better spare parts inventory analysis in the initial provisioning phase and providing managers with a systematic tool to analyse the trade-off between spare parts criticality and total inventory value.

Simulations on the Spare Parts Inventory Management of Equipment Maintenance in Manufacturing Enterprise Based on Flexsim

2013 ◽  
Vol 712-715 ◽  
pp. 3181-3186 ◽  
Author(s):  
Xue Sun
Keyword(s):  
Inventory Management ◽  
Original System ◽  
Spare Parts ◽  
Simulation Software ◽  
Management Level ◽  
Abc Classification ◽  
Spare Parts Management ◽  
Spare Parts Inventory ◽  
Before And After ◽  
Optimized Model

In order to promote inventory management level, against the existing problem of spare parts management currently, the spare parts inventory management system of an enterprise engaged in casting and mechanical operations was studied. First, the simulation software Flexsim was used to model the original system. Then for the purpose of optimizing the system, ABC classification was proposed. According to the comparison of simulation results before and after optimization, optimized model can effectively improve the efficiency of inventory management. This can provide the reference of spare parts management for the other companies.

Inventory Models for Spare Parts Management: A Review

2017 ◽  
Vol 28 ◽  
pp. 182-198 ◽  
Author(s):  
Oumaima Bounou ◽  
Abdellah El Barkany ◽  
Ahmed El Biyaali
Keyword(s):  
Inventory Management ◽  
Graphical Models ◽  
Probabilistic Models ◽  
Spare Parts ◽  
Analytical Models ◽  
Inventory Models ◽  
Spare Parts Management ◽  
Spare Parts Inventory ◽  
Random Nature

The spare parts inventory is a necessity to ensure the continuity of services. Unwanted service interruptions caused by failures can have serious consequences for human and financial levels. Analytical models begin to look to the random nature of inventory problems. Despite the existence of a wide variety of inventory management models, inventory management of spare parts is a major challenge for organizations. Some authors have integrated the principle of risk of shortage in their different models based on probabilistic and graphical models. This article is in the form of a literature review on models of spare parts management. In this article, we have presented first methods of identification and classification of parts, the approaches of estimation and identification of spare parts needs. Afterwards, we have moved to probabilistic models for spare parts management, among these models, there are models that take aim minimize and master the risk of shortages.

Integrated maintenance/spare parts management for manufacturing system according to variable production rate impacting the system degradation

2020 ◽  
Vol 28 (1) ◽  
pp. 72-84 ◽  
Author(s):  
Sofiene Dellagi ◽  
Wajdi Trabelsi ◽  
Zied Hajej ◽  
Nidhal Rezg
Keyword(s):  
Production Rate ◽  
Preventive Maintenance ◽  
Manufacturing System ◽  
Planning Horizon ◽  
Sensitivity Study ◽  
Spare Parts ◽  
Rate Variation ◽  
Maintenance Strategy ◽  
Spare Parts Management ◽  
The Impact

This study develops an analytical model in order to determine an optimal integrated maintenance plan and spare parts management. We consider a manufacturing system, producing only one type of product, over a finite planning horizon H equal to the sum of all production periods and the production quantity of each period is known. This system is subject to a continuously increasing degradation rate. That is why a preventive maintenance strategy is adopted in order to face the increasing failure rate. We noted that contrarily to the majority of studies in literature, we take into account the impact of the production rate variation on the manufacturing system degradation and consequently on the adopted optimal maintenance strategy. In addition, the real need of spare parts relative to the scheduled maintenance actions is taken into account. In fact, the purpose of our study consists at determining the optimal preventive maintenance frequency and the optimal quantity of spare parts to order by minimizing a total cost, including maintenance and spare parts management. Numerical examples are presented along with a sensitivity study in order to prove the use of the developed model for deriving the optimal integrated strategy for any instance of the problem.

scholarly journals The Lean Management of Spare Parts in Automotive Manufacturing

2018 ◽  
Vol 214 ◽  
pp. 04005
Author(s):  
Dongdong Guo ◽  
Xingwu Yu
Keyword(s):  
Inventory Management ◽  
Spare Part ◽  
Spare Parts ◽  
Automotive Manufacturing ◽  
Purchasing Cost ◽  
Manufacturing Enterprises ◽  
Spare Parts Management ◽  
Purchase Process ◽  
Spare Part Management ◽  
Maintenance Process

Spare part management is one of the most important work for enterprises, especially for manufacturing enterprises; however, the spare part management problems trouble enterprise operators a lot. In this article, implementation methods of lean spare parts management are illuminated. Spare parts purchase process is declared to reduce the purchasing cost and inventory value. We had established a suitable lean spare parts inventory management model for consumable parts, wear parts, insurance parts and accident parts. In addition, methods of lean spare parts management had been created base on optimized supply chain, ERP and integrating repeated material inventory. We used SAP-iPro system and self-developed system to manage spare parts, so that warehouse management process, spare parts purchase process and maintenance process are standardized. According to theory analysis and practice, the remarkable economic benefit is created for enterprise by the means of optimizing spare parts distribution, standardizing and scientific spare parts management.

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