A heuristic to minimize the inventory value of repairable parts with service constraints: Application to an airline company
Abstract: This paper focuses
on the improvement of the inventory management of repairable parts of the
airline company Air Nostrum. The company uses a common sales replacement policy
to manage their repairable parts and the same target fill rate for every item.
This target is very high in order to assure a high availability of the
aircrafts, dealing also to a high inventory value.
Design/methodology/approach: However, this paper shows that an
alternative heuristic approach outperforms the previous one terms of inventory
value while fulfilling the target fill rate.
Findings and Originality/value: This improvement is illustrated with an
extensive and real dataset and may lead to a significant inventory reduction.
Originality/value: Therefore, a company can design its inventory policies
applying this heuristic focused on inventory reduction with a service level
constraint instead of the usual cost optimization or service level fulfillment.
Author: Manuel Cardós, Eugenia
Babiloni, Marta E. Palmer, Ester Guijarro
Journal Code: jptindustrigg130037
