An EOQ-Based Spare Parts Network Design

Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 197)

Abstract

The aim of this chapter is to combine two types of problems: a facility location problem, that determines where a facility should be set up in order to serve a set of customers, and a EOQ-based spare parts inventory problem, which seeks to determine the optimal stocking levels of a collection of spare parts. The theoretical findings are practiced on a case for projectors of a Belgian Digital Cinema Projector producer, serving customers located all over the world. The goal is to minimize the total costs under four scenarios, which differ mainly in terms of SLA’s and modes of transport. The most remarkable difference between these total costs is related to the number of opened facilities, the safety stock that is required, and the transportation modes that can be used in the considered scenario.

Keywords

Europe Transportation Expense Mete 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Research Center for Operations ManagementKatholieke Universiteit LeuvenLeuvenBelgium
  2. 2.Faculty of Business and EconomicsKatholieke Universiteit Leuven Campus KortrijkKortrijkBelgium

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