Multi-echelon, Multi-indenture System

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


Chapter  7 is devoted to a general multi-item, multi-echelon, multi-indenture spare parts inventory system. For the distribution network, we assume a tree structure with one central point, locations at close distance of installed machines, and intermediate points. Each location can keep spare parts on stock and may have repair facilities. Regarding the multi-indenture structure, we assume that we have assemblies, subassemblies, and lower level components. We allow commonality at the level of the subassemblies and at lower levels. We describe an exact recursion for the evaluation of a given basestock policy. This recursion leads to an exact evaluation method, and it is the basis for an accurate and efficient approximate evaluation method based on two-moment fits. Next, we describe a greedy heuristic, and we present a case study at the Royal Netherlands Navy.


Spare Part Greedy Heuristic Ship Time Central Depot Repair Shop 
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.


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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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