The effects of resupply flexibility on the design of service parts supply systems |
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Authors: | Filip Van Utterbeeck Hartanto Wong Dirk Van Oudheusden Dirk Cattrysse |
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Affiliation: | 1. Department of Mathematics, Royal Military Academy, Renaissancelaan 30, B-1000 Brussels, Belgium;2. Innovative Manufacturing Research Centre, Cardiff University, Colum Drive, Cardiff CF10 3EU, Wales, UK;3. Centre for Industrial Management, Katholieke Universiteit Leuven, Celestijnenlaan 300A, B-3001 Leuven, Belgium |
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Abstract: | We apply simulation optimization to determine the optimal design and stock distribution for a single item supply system with a one-for-one replenishment policy. We investigate both the effect of the number of echelons and the degree of resupply flexibility, considering single-echelon and two-echelon systems with either no resupply flexibility, lateral transhipments only or both lateral transhipments and emergency deliveries. We show that the implementation of an emergency delivery option allows an augmentation of the fraction of customers served by lateral transhipments and that increased resupply flexibility enables increasingly important cost savings. |
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