Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System
<i>Background:</i> Exchangeable item repair systems are inventory systems. A nonfunctional item is exchanged for a functional item and returns to the system after being repaired. In our periodic review setting, repair is performed either in-house or outsourced. When repair is in-house, a...
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MDPI AG
2024-03-01
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| Series: | Logistics |
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| Online Access: | https://www.mdpi.com/2305-6290/8/2/34 |
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| author | Yahel Giat |
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| author_sort | Yahel Giat |
| collection | DOAJ |
| description | <i>Background:</i> Exchangeable item repair systems are inventory systems. A nonfunctional item is exchanged for a functional item and returns to the system after being repaired. In our periodic review setting, repair is performed either in-house or outsourced. When repair is in-house, a repaired item is returned to stock regardless of the repair status of the other items in its order. In contrast, with outsourced repair, the entire order must be repaired for it to return to stock. <i>Methods:</i> We develop formulas for the window fill rate (probability for a customer to be served within a given time window) to measure the system’s performance and compute it for each repair model. The cost of outsourcing is the difference between the number of spares needed to maintain a target performance level when repair is internal and when it is outsourced. <i>Results and Conclusions:</i> In our numerical example, we show that the window fill rate in both models is S-shaped in the number of spares and show how the graph shifts to the right when customer tolerance decreases and order cycle time increases. Further, we show that the cost of outsourcing is increasing with customer tolerance and with the target performance level. |
| format | Article |
| id | doaj-art-eccf20a623474551a27e1102b41b90c5 |
| institution | Matheson Library |
| issn | 2305-6290 |
| language | English |
| publishDate | 2024-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Logistics |
| spelling | doaj-art-eccf20a623474551a27e1102b41b90c52025-08-02T22:42:58ZengMDPI AGLogistics2305-62902024-03-01823410.3390/logistics8020034Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair SystemYahel Giat0Department of Industrial Engineering, Jerusalem College of Tehnology, Jerusalem 9116001, Israel<i>Background:</i> Exchangeable item repair systems are inventory systems. A nonfunctional item is exchanged for a functional item and returns to the system after being repaired. In our periodic review setting, repair is performed either in-house or outsourced. When repair is in-house, a repaired item is returned to stock regardless of the repair status of the other items in its order. In contrast, with outsourced repair, the entire order must be repaired for it to return to stock. <i>Methods:</i> We develop formulas for the window fill rate (probability for a customer to be served within a given time window) to measure the system’s performance and compute it for each repair model. The cost of outsourcing is the difference between the number of spares needed to maintain a target performance level when repair is internal and when it is outsourced. <i>Results and Conclusions:</i> In our numerical example, we show that the window fill rate in both models is S-shaped in the number of spares and show how the graph shifts to the right when customer tolerance decreases and order cycle time increases. Further, we show that the cost of outsourcing is increasing with customer tolerance and with the target performance level.https://www.mdpi.com/2305-6290/8/2/34inventoryspares allocationwindow fill ratecustomer patienceorder crossoveroptimization |
| spellingShingle | Yahel Giat Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System Logistics inventory spares allocation window fill rate customer patience order crossover optimization |
| title | Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System |
| title_full | Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System |
| title_fullStr | Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System |
| title_full_unstemmed | Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System |
| title_short | Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System |
| title_sort | stock levels and repair sourcing in a periodic review exchangeable item repair system |
| topic | inventory spares allocation window fill rate customer patience order crossover optimization |
| url | https://www.mdpi.com/2305-6290/8/2/34 |
| work_keys_str_mv | AT yahelgiat stocklevelsandrepairsourcinginaperiodicreviewexchangeableitemrepairsystem |