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Spare Parts Planning and Control for Maintenance Operations Spare Parts Planning and Control for Maintenance Operations This thesis is number D175 of the thesis series of the Beta Research School for Operations Management and Logistics. The Beta Research School is a joint effort of the School of Industrial Engineering and the department of Mathematics and Computer Science at Eindhoven University of Technology, and the Center for Production, Logistics and Operations Management at the University of Twente. A catalogue record is available from the Eindhoven University of Technology Library. ISBN: 978-90-386-3475-3 Printed by Proefschriftmaken.nl Uitgeverij BOXPress jj Cover Design by Roy Lurken - BureauNobel This research has been funded by NedTrain. Spare Parts Planning and Control for Maintenance Operations PROEFSCHRIFT ter verkrijging van de graad van doctor aan de Technische Universiteit Eindhoven, op gezag van de rector magnificus, prof.dr.ir. C.J. van Duijn, voor een commissie aangewezen door het College voor Promoties in het openbaar te verdedigen op maandag 11 november 2013 om 16.00 uur door Joachim Jacob Arts geboren te Eindhoven Dit proefschrift is goedgekeurd door de promotoren en de samenstelling van de promotiecommissie is als volgt: voorzitter: prof.dr. A.G.L. Romme 1e promotor: prof.dr.ir. G.J.J.A.N. van Houtum 2e promotor: prof.dr. A.G. de Kok leden: prof.dr.ir. O.J. Boxma prof.dr.ir. L.A.M. van Dongen (Universiteit Twente) prof.dr. R. Levi (Massachusetts Institute of Technology) prof.dr. S. Minner (Technische Universit¨atM¨unchen) prof.dr. C. Witteveen (Technische Universiteit Delft) Acknowledgments Although this thesis has only one author, it is in fact the result of contributions by many people. First I would like to thank my first promotor Geert-Jan van Houtum for his supervision and support. He taught me the tricks of the research trade as well as how to navigate the academic world. He made sure all the research fitted in a larger perspective while also helping out with details and technicalities. I would like to thank NedTrain for funding my PhD research. Working in the maintenance development department of NedTrain under the supervision of Bob Huisman was a great pleasure. Bob Huisman created the perfect environment where practice and research could meet. Apart from being involved with the particulars of research, he also has a keen eye for the human aspect of the research endeavor. I also thank Michel Wilson and Jorge Parada for our joint discussions on research and applications at NedTrain. I thank Leo van Dongen for leading this collaboration between NedTrain and academia, and for chairing the steering committee of this collaboration. I also thank him for his input during meetings of the steering committee and for being on my thesis committee. At NedTrain, I am also indebted to Joost Florie and Guido Aerts for their input on modeling issues and for acquainting me with the particulars of NedTrain's supply chain and repair shop operations. I thank Maarten Driessen for our collaboration on Chapter 2 of this thesis. I enjoyed our many conversations on how to apply scientific knowledge in practice. I also thank Kristina Sharypova for tolerating such lengthy conversations in our office, bringing a pleasant atmosphere to the office, and reminding us of the more important things in life. I would like to thank Simme Douwe Flapper for our collaboration on Chapter 3. Chapter 3 has also benefited from the graduation projects of Karin Vernooij, Anne Basten, and Martine Rousseau. I thank Rob Basten for being my daily supervisor when he was in Eindhoven and his contributions to Chapter 4 of this thesis. Rob Basten, together with Frank Karsten and Willem van Jaarsveld, have provided the necessary feedback and reflection on academic life. Chapter 5 of this thesis has benefited from the master thesis projects of Martijn van Aspert and Nadine Loeffen. I would like to thank Retsef Levi for hosting my visit to MIT and our joint work on Chapter 6 of this thesis. In his busy schedule, he managed to free time for our collaboration and he was always very sharp during our meetings. Working at the Operations Research Center at MIT was truly stimulating. I would also like to thank my sister Saskia and her husband John for letting me and my family stay at their home and otherwise making our stay in the greater Boston area a pleasant experience. My visit to MIT was partially funded by the Prins Bernhard Fellowship supported by the De Breed Kreiken innovation fund. Ton de Kok became my second promotor somewhat late in my PhD project, but has shown an active interest in my work from the beginning. I really enjoyed our many conversations on very diverse topics. I thank Onno Boxma, Stefan Minner, and Cees Witteveen for being on my thesis committee and their valuable feedback on my work. Qiushi Zhu was my office mate for almost three years. We had some great laughs and he was always patient enough to hear the boring details of my research problems. I thank all my current and former colleagues at the OPAC department for the good atmosphere and tea breaks. In particular, Claudine made for an excellent atmosphere in the E-corridor and she helped with many planning en technical problems (in the non-mathematical sense). When I was young, my parents taught me the value of getting a good education. I thank them for supporting me all the way to a PhD degree. My siblings were very influential in shaping my ideas about the quest for truth and the role of academic research in this quest. Doing a PhD can put quite some strain on family life and I thank my wife Heidi for supporting me in ways too numerous to mention. She performed a very thorough proofreading of the entire thesis and carefully checked my algebra when I was doing a long derivation and needed a second pair of eyes. My two sons were also instrumental in the moral support needed to complete a thesis. They make a short appearance in Chapter 5. Finally, I thank my Father in heaven for his support in all things. Contents 1 Introduction 1 1.1 Maintenance operations . 4 1.1.1 Maintenance strategies . 4 1.1.2 Uncertainty in maintenance operations . 6 1.1.3 Spare parts in maintenance operations . 7 1.1.4 Maintenance operations at NedTrain . 9 1.2 Spare part supply chains . 9 1.2.1 Repair and overhaul shops . 10 1.2.2 Performance measures . 11 1.2.3 Spare part supply chain at NedTrain . 11 1.3 Research objectives . 12 1.3.1 Framework . 12 1.3.2 Rotables, usage based maintenance and efficient utilization of resources . 12 1.3.3 Repairables, condition based maintenance, and repair lead time flexibility . 13 1.3.4 Consumables, emergency procedures . 14 1.4 Contributions of the thesis . 14 1.4.1 Rotable overhaul planning . 14 1.4.2 Repairable stocking and expediting under fluctuating demand . 16 1.4.3 Consumable stocking with emergency shipments . 18 1.5 Outline of the thesis . 19 2 Maintenance spare parts planning framework 21 2.1 Introduction . 21 2.2 Characterization of the environment . 24 2.2.1 Characterization of system maintenance . 24 2.2.2 Maintenance spare parts supply chain overview . 26 2.2.3 Demand characteristics of maintenance spare parts . 28 2.3 Framework for maintenance spare parts planning and control . 28 2.3.1 Assortment management . 29 2.3.2 Demand forecasting . 32 2.3.3 Parts returns forecasting . 34 2.3.4 Supply management . 35 2.3.5 Repair shop control . 38 2.3.6 Inventory control . 39 2.3.7 Spare parts order handling . 41 2.3.8 Deployment . 42 2.4 Framework related literature and open research topics . 44 2.4.1 Assortment management literature . 44 2.4.2 Demand forecasting literature . 45 2.4.3 Parts returns forecasting literature . 46 2.4.4 Supply management literature . 46 2.4.5 Repair shop control literature . 46 2.4.6 Inventory control literature . 47 2.4.7 Spare parts order handling literature . 48 2.4.8 Literature overview . 49 2.5 Concluding remarks . 51 3 Rotable overhaul and supply chain planning 53 3.1 Introduction . 53 3.2 Literature review and contribution . 56 3.2.1 Preventive maintenance and capacity planning . 56 3.2.2 Aggregate production and supply chain planning . 58 3.2.3 Contribution . 59 3.3 Model . 59 3.3.1 Supply chain dynamics . 60 3.3.2 Workforce capacity and flexibility in the overhaul workshop . 62 3.3.3 Rotable availability . 63 3.3.4 Overhaul deadlines propagation . 63 3.3.5 Cost factors . 64 3.3.6 Model remarks . 65 3.3.7 Mixed integer programming formulation . 67 3.3.8 Modeling flexibility . 68 3.4 Case study . 69 3.4.1 Computational feasibility . 70 3.4.2 Sensitivity of result to integrality constraints . 71 3.4.3 Insights from case-study . 73 3.5 Numerical results for randomly generated instances . 75 3.5.1 Random instance generator . 75 3.5.2 Results . 77 3.6 Conclusion . 80 3.A Proof of Proposition 3.2 . 81 3.B Details on the random instance generator . 82 3.B.1 Rotable characteristics . 82 3.B.2 Initial conditions and flexibility . 83 3.B.3 Costs parameters . 83 4 Repairable stocking and expediting 85 4.1 Introduction . 85 4.2 Literature review . 89 4.3 Model formulation . 90 4.3.1 Main assumptions and justifications . 92 4.4 Exact Analysis . 94 4.4.1 Expediting policy optimization . 94 4.4.2 Turn-around stock optimization . 104 4.5 E-WDT Heuristic .
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