Managing the After Sales Logistic Network— A Simulation Study of a Spare Parts Supply Chain

  • Fredrik Persson
  • Nicola Saccani
Part of the IFIP — The International Federation for Information Processing book series (IFIPAICT, volume 246)


The after-sales services and in particular the spare parts business have acquired, in recent years, a strategic role for firms manufacturing durable or capital goods, as they represent a source of revenue, profit and a mean to achieve customer satisfaction and retention. Nonetheless, the huge variety and the characteristics of the demand of spare parts make the configuration and management of the spare parts inventory and distribution systems critical decision areas for managers. These decisions, in fact, may lead to very different cost and service performance by the system itself. The case study analyzed concern a world player of heavy equipment based in Sweden. Its spare parts distribution system is described, and the paper analyzes the configuration and allocation decisions concerning a second European warehouse and the transfer to that warehouse of a set of suppliers. A simulation model has been developed in order to support these choices. Discrete event simulation is well suited for studies where time-dependant relations are analyzed. Supply Chain Simulation applied to the case study provides useful insights on the decision choices and the cost structure related to the spare parts distribution system.


Supply Chain Discrete Event Simulation Spare Part Inventory Control Case Company 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. 1.
    Cohen M.A., Agrawal N., Agrawal V., (2006). Winning in the Aftermarket, Harvard Business Review, May, 84(5), 129–138Google Scholar
  2. 2.
    Yamashima H., (1989). The service parts control problem, Engineering Costs and Production Economics, 16, 195–208CrossRefGoogle Scholar
  3. 3.
    Goffin, K., (1999), Customer support-A cross-industry study of distribution channels and strategies, International Journal of Physical Distribution and Logistics Management 29(6), 374–397.CrossRefGoogle Scholar
  4. 4.
    Huiskonen J., (2001). Maintenance spare parts logistics: Special characteristics and strategic choices, Int. J. Production Economics, (71), 125–133Google Scholar
  5. 5.
    Cohen M.A., Agraval N., Agraval V., (2006). Achieving Breakthrough Service Delivery Through Dynamic Asset Deployment Strategies, Interfaces, 36(3), 259–271CrossRefGoogle Scholar
  6. 6.
    Williams T.M., (1984). Stock Control with Sporadic and Slow-Moving Demand, Journal of the Operational Research Society, 35(10), 939–498MATHCrossRefGoogle Scholar
  7. 7.
    Eaves A., Kingsman B., (2004). Forecasting for the ordering and stock-holding of spare parts, Journal of the Operational Research Society, 55, 431–437MATHCrossRefGoogle Scholar
  8. 8.
    Gajpal P.P., Ganesh L.S., Rajendran C., (1994). Criticality analysis of spare parts using the analytic hierarchy process, Int. J. Production Economics, 35, 293–297CrossRefGoogle Scholar
  9. 9.
    Braglia M., Grassi A., Montanari R., (2004). Multi-attribute classification method for spare parts inventory management, Journal of Quality in Maintenance Engineering, 10(1), 55–65CrossRefGoogle Scholar
  10. 10.
    Banks, J., Buckley, S., Jain, S., Lendermann, P., and Manivannan, M., (2002).“Panel session: Opportunities for simulation in supply chain management”, Proceedings from the 2002 Winter Simulation Conference, pp. 1652–1658.Google Scholar
  11. 11.
    Persson, F. (2003). Discrete Event Simulation of Supply Chains, Doctoral ThesisGoogle Scholar

Copyright information

© International Federation for Information Processing 2007

Authors and Affiliations

  • Fredrik Persson
    • 1
  • Nicola Saccani
    • 2
  1. 1.Department of Management and EngineeringLinkoping UniversityLinköpingSweden
  2. 2.Department of Mechanical and Industrial EngineeringUniversitá degli Sutdi di BresciaBresciaItaly

Personalised recommendations