Integration of Real-Time Demand Information and Spare Parts Distribution Planning for the Optimization of Spare Parts Supply in After-Sales Service Networks

Abstract

Accurate spare parts demand planning and effective distribution planning is essential for providers of after-sales services in the machine and plant engineering industry to ensure high spare parts availability for maintenance and failure orders (callouts) at a reasonable cost. Low spare parts availability is primarily the result of high uncertainty in spare parts demand, leading to misallocation of parts within after-sales service networks. The lack of spare parts availability causes equipment downtime, resulting in customer dissatisfaction and possible penalty costs for after-sales service providers, if response times are contractually fixed. This paper proposes an approach and planning methods for integrating real-time status information about equipment utilization and service conditions to determine optimal spare parts stocking strategies. For this purpose, spare parts stocking strategies and ordering policies for application in after-sales service networks are analyzed. Furthermore, a binary linear optimization model is developed for the assignment of stocking strategies to spare parts based on real-time demand information of the equipment to be serviced. This method uses data provided by an internationally operating elevator company.