Static Repair Priorities

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


In this chapter, we study a multi-item, single-location inventory model with a capacitated repair shop. The repair shop is modeled as a single exponential server. This is not realistic in general, but leads to a fair way of studying the effect of setting static priorities in the repair shop. The idea is that total costs can be reduced when expensive repairable parts get a high priority and relatively low basestock levels (leading to a strong decrease in costs) and cheap repairable parts get a low priority and relatively high basestock levels (leading to a limited increase in costs). We derive an exact evaluation method under a given priority setting and given basestock levels. Next, we show that the basestock levels can easily be optimized under a given priority assignment. Finally, we give an exact method and multiple heuristic methods for the priority assignment. We show that the use of static priorities, in comparison to having no priorities, leads to a large reduction (40 % or more) in total costs in many instances. We also show that two priority classes suffice to obtain 90 % of the maximal savings via static priorities.


  1. 1.
    Adan, I.J.B.F., Sleptchenko, A., Van Houtum, G.J.: Reducing costs of spare parts supply systems via static priorities. Asia-Pac. J. Oper. Res. 26, 559–585 (2009). Copyright © 2009 by World Scientific Publishing Co. & Operational Research Society of Singapore Google Scholar
  2. 2.
    Buzacott, J.A., Shanthikumar, J.G.: Stochastic Models of Manufacturing Systems. Prentice Hall, Englewood Cliffs (1993) Google Scholar
  3. 3.
    Caggiano, K.E., Muckstadt, J.A., Rappold, J.A.: Integrated real-time capacity and inventory allocation for reparable service parts in a two-echelon supply system. Manuf. Serv. Oper. Manag. 8, 292–319 (2006) Google Scholar
  4. 4.
    Dirkzwager, A.A.: On the use of priority classes in a capacitated model of repairable spare parts at the Royal Netherlands Navy. M.Sc. thesis, master program Industrial Engineering, Eindhoven University of Technology (2004).
  5. 5.
    Hausman, W., Scudder, G.: Priority scheduling rules for repairable inventory systems. Manag. Sci. 28, 1215–1232 (1982) Google Scholar
  6. 6.
    Hopp, W.J., Spearman, M.L.: Factory Physics, 3rd edn. Irwin McGraw-Hill, Boston (2008) Google Scholar
  7. 7.
    Kat, B., Avşar, Z.M.: Using aggregate fill rate for dynamic scheduling of multi-class systems. Ann. Oper. Res. 182, 87–117 (2011) Google Scholar
  8. 8.
    Miller, D.R.: Computation of steady-state probabilities for \(M/M/1\) priority queues. Oper. Res. 29, 945–958 (1981) Google Scholar
  9. 9.
    Muckstadt, J.A.: Analysis and Algorithms for Service Parts Supply Chains. Springer, New York (2005) Google Scholar
  10. 10.
    Neuts, M.F.: Matrix-Geometric Solutions in Stochastic Models; An Algorithmic Approach. Dekker, New York (1989) Google Scholar
  11. 11.
    Peña Perez, A., Zipkin, P.: Dynamic scheduling rules for a multiproduct make-to-stock queue. Oper. Res. 45, 919–930 (1997) Google Scholar
  12. 12.
    Pyke, D.F.: Priority repair and dispatch policies for repairable-item logistics systems. Nav. Res. Logist. 37, 1–30 (1990) Google Scholar
  13. 13.
    Sleptchenko, A., Adan, I.J.B.F., Van Houtum, G.J.: Joint queue length distribution of multi-class, single-server queues with preemptive priorities. EURANDOM report 2004-045, Eindhoven University of Technology (2004) Google Scholar
  14. 14.
    Sleptchenko, A., Van Harten, A., Van der Heijden, M.C.: Using repair priorities to reduce stock investment in spare part networks. Eur. J. Oper. Res. 163, 733–750 (2005) Google Scholar
  15. 15.
    Tiemessen, H.G.H., Van Houtum, G.J.: Reducing costs of repairable inventory supply systems via dynamic scheduling. Int. J. Prod. Econ. 143, 478–488 (2013)CrossRefGoogle Scholar
  16. 16.
    Tiemessen, H.G.H., Fleischmann, M., Van Houtum, G.J.: Dynamic control in multi-item production/inventory systems. Working paper, Eindhoven University of Technology (2014) Google Scholar
  17. 17.
    Van der Heijden, M.C., Alvarez, E.M., Schutten, J.M.J.: Inventory reduction in spare parts networks by selective thoughput time reduction. Int. J. Prod. Econ. 143, 509–517 (2013) Google Scholar

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

Personalised recommendations