Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO

Recent trends in the commercial aviation industry have resulted in rapidly increasing complexity and decentralisation in service parts logistics systems. As a consequence, MRO service providers tend to adopt more flexible strategies, such as service parts sourcing and demand fulfilment for customers...

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Main Authors: Rezaei, Somarin Aghil, Asian, Sobhan, Jolai, Fariborz, Chen, Songlin
Other Authors: School of Mechanical and Aerospace Engineering
Format: Journal Article
Language:English
Published: 2020
Subjects:
Online Access:https://hdl.handle.net/10356/139601
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author Rezaei, Somarin Aghil
Asian, Sobhan
Jolai, Fariborz
Chen, Songlin
author2 School of Mechanical and Aerospace Engineering
author_facet School of Mechanical and Aerospace Engineering
Rezaei, Somarin Aghil
Asian, Sobhan
Jolai, Fariborz
Chen, Songlin
author_sort Rezaei, Somarin Aghil
collection NTU
description Recent trends in the commercial aviation industry have resulted in rapidly increasing complexity and decentralisation in service parts logistics systems. As a consequence, MRO service providers tend to adopt more flexible strategies, such as service parts sourcing and demand fulfilment for customers with different service-level requirements. The MRO service providers often enter into cooperative agreements with other service providers to pool inventories, enabling them to increase their flexibility in delivering services to multiple airlines with different contractual terms. Although using cooperative strategies, such as emergency resupply, is useful to increase flexibility, the inherent complexity of optimal mechanism is a critical issue that needs to be further investigated. To this aim, we consider a repairable service parts inventory system with multi-customer classes and develop an optimal emergency resupply policy. Following this, to overcome the intractability issue of finding the optimal policy, an efficient approximation method is proposed. Numerical results indicate that the proposed approximation method is highly accurate, and leads to a significant costs reduction. This paper sheds light on the effectiveness of emergency resupply policy that improves MRO service providers’ flexibility and enables them to ensure responsive service parts inventory.
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spelling ntu-10356/1396012020-05-20T07:48:40Z Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO Rezaei, Somarin Aghil Asian, Sobhan Jolai, Fariborz Chen, Songlin School of Mechanical and Aerospace Engineering Engineering::Mechanical engineering Inventory Control Repairable Service Parts Recent trends in the commercial aviation industry have resulted in rapidly increasing complexity and decentralisation in service parts logistics systems. As a consequence, MRO service providers tend to adopt more flexible strategies, such as service parts sourcing and demand fulfilment for customers with different service-level requirements. The MRO service providers often enter into cooperative agreements with other service providers to pool inventories, enabling them to increase their flexibility in delivering services to multiple airlines with different contractual terms. Although using cooperative strategies, such as emergency resupply, is useful to increase flexibility, the inherent complexity of optimal mechanism is a critical issue that needs to be further investigated. To this aim, we consider a repairable service parts inventory system with multi-customer classes and develop an optimal emergency resupply policy. Following this, to overcome the intractability issue of finding the optimal policy, an efficient approximation method is proposed. Numerical results indicate that the proposed approximation method is highly accurate, and leads to a significant costs reduction. This paper sheds light on the effectiveness of emergency resupply policy that improves MRO service providers’ flexibility and enables them to ensure responsive service parts inventory. 2020-05-20T07:48:40Z 2020-05-20T07:48:40Z 2017 Journal Article Somarin, A. R., Asian, S., Jolai, F., & Chen, S. (2018). Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO. International Journal of Production Research, 56(10), 3547-3562. doi:10.1080/00207543.2017.1351640 0020-7543 https://hdl.handle.net/10356/139601 10.1080/00207543.2017.1351640 2-s2.0-85027020608 10 56 3547 3562 en International Journal of Production Research © 2017 Informa UK Limited, trading as Taylor & Francis Group. All right reserved.
spellingShingle Engineering::Mechanical engineering
Inventory Control
Repairable Service Parts
Rezaei, Somarin Aghil
Asian, Sobhan
Jolai, Fariborz
Chen, Songlin
Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO
title Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO
title_full Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO
title_fullStr Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO
title_full_unstemmed Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO
title_short Flexibility in service parts supply chain : a study on emergency resupply in aviation MRO
title_sort flexibility in service parts supply chain a study on emergency resupply in aviation mro
topic Engineering::Mechanical engineering
Inventory Control
Repairable Service Parts
url https://hdl.handle.net/10356/139601
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AT asiansobhan flexibilityinservicepartssupplychainastudyonemergencyresupplyinaviationmro
AT jolaifariborz flexibilityinservicepartssupplychainastudyonemergencyresupplyinaviationmro
AT chensonglin flexibilityinservicepartssupplychainastudyonemergencyresupplyinaviationmro