Abstract
This chapter addresses the problem of spare parts allocation in a single echelon inventory system with complete pooling characterized by expensive spares, long repairing time and a strict service constraint. The work is motivated by the practical problem faced by a large Italian logistics company that handles 17 warehouses supporting the daily activity of 38 civil airports spread over the Italian territory. The objective is the minimization of the total costs for inventory holding, lateral transshipments and emergency shipments. The spares allocation problem is formulated as a non convex integer program. The special structure of the problem allows to design an efficient branch and bound procedure. The lower bound is obtained by formulating a reduced problem with convex objective function, solvable at optimality very efficiently. Computational experiments, carried on practical data, show that this method solves at optimality many practical instances.
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Cesaro, A., Pacciarelli, D. (2015). Optimal Stock Allocation in Single Echelon Inventory Systems Subject to a Service Constraint. In: Dellino, G., Meloni, C. (eds) Uncertainty Management in Simulation-Optimization of Complex Systems. Operations Research/Computer Science Interfaces Series, vol 59. Springer, Boston, MA. https://doi.org/10.1007/978-1-4899-7547-8_11
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