Multiple Machine Types with Commonality

  • Geert-Jan van Houtum
  • Bram Kranenburg
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 227)


In Chap.  3, we analyze a multi-item, single-location inventory model, and we assume that the installed base consists of machines of multiple machine types. The machine types have common components and a target aggregate mean waiting time is given per machine type. We assume that emergency shipments are being used when stockouts occur, and the inventory of spare parts is controlled by a basestock policy. The objective is to minimize inventory holding costs and emergency shipment costs subject to multiple aggregate mean waiting time constraints. We describe a greedy heuristic, a Dantzig-Wolfe heuristic, and the corresponding Dantzig-Wolfe lower bound for the optimal costs. We show that both heuristics are efficient and accurate, and we study the effect of commonality on the total costs. Finally, we present a case study at ASML.


Feasible Solution Master Problem Spare Part Demand Rate Greedy Heuristic 
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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  • Geert-Jan van Houtum
    • 1
  • Bram Kranenburg
    • 2
  1. 1.Eindhoven University of TechnologyEindhovenThe Netherlands
  2. 2.Consultants in Quantitative Methods CQM B.V.EindhovenThe Netherlands

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