IJSEM.2016.081845
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1 Introduction
2 Research methodology
Figure 1 Summary of the research methodology considered and performed in this paper
especially in the case where the list of spare parts includes a large number of components
and the resources required to process them is limited. In the literature several models
have been developed by researchers (Table 1). Second phase, present spare parts demand
forecasting models. The forecasting model are widely used to predict activity levels in
the future based on observations made in the past, the choice of an appropriate
forecasting model must take into account all these peculiarities that affect the forecast
precision. Table 2 summarises the models developed by researchers in the last decade.
In the last phase, we examined the joint optimisation models for the management of spare
parts and maintenance. Indeed, recent studies have shown that the joint optimisation of
replenishment policies of spare parts and maintenance strategies generate substantial
gains in availability and costs of operation (Wang, 2011, 2012). While, other researchers
have integrated the replenishment policies of spares parts and the repair capacity
(De Smidt-Destombes et al., 2007, 2009).
Models of spare parts inventories’ optimisation 99
Classification methods
Reference Classification criteria
Methods Quantitative Qualitative
(Partovi and ˗ Cost ˗ ABC-Analysis X
Anandarajan, ˗ Characteristics and integrated with ANN
2002) uncertainty supply Volume (artificial neural
and value demand networks)
(Eaves and ˗ Characteristics and ˗ The method based on X X
Kingman, 2004) uncertainty supply the coefficient of
˗ Demand variability variation of demand
˗ Two-dimensional
matrix
(Braglia et al., ˗ Criticality ˗ AHP (Analytic X
2004) ˗ Cost Hierarchic Process)
˗ Characteristics and
uncertainty supply
˗ Volume and value demand
(Syntetos and ˗ Demand variability ˗ The method based on X X
Boylan, 2005) ˗ Order frequency the coefficient of
variation of demand
˗ Two-dimensional
matrix
(Ramanathan, ˗ Criticality ˗ ABC-Analysis X
2006) ˗ Characteristics and integrated with
uncertainty supply weighted linear
optimisation-
˗ Cost
˗ Volume and value demand
(Chen et al., ˗ Criticality ˗ ABC-Analysis X
2006) ˗ Characteristics and integrated with
uncertainty supply weighted Euclidean
distances with
˗ Volume and value demand quadratic
optimisation.
(Zhou and Fan, ˗ Criticality ˗ ABC-Analysis X
2007) ˗ characteristics and integrated with
uncertainty supply weighted linear
optimisation.
˗ Cost
(Ng, 2007) ˗ Characteristics and ˗ ABC Analysis X
uncertainty supply integrated with
˗ Cost weighted linear
optimisation
˗ Volume and value demand
(Parodi and ˗ Item criticality ˗ Two-dimensional X
Pintelon, 2007) ˗ Item specific matrix
(Boylan et al., ˗ Demand variability ˗ The method based X X
2008) ˗ Order frequency on the coefficient of
variation of demand
˗ Two-dimensional
matrix
100 Z. Iraqi, A. El Barkany and A. El Biyaali
Classification methods
Reference Classification criteria
Methods Quantitative Qualitative
(Chu et al., ˗ Criticality ˗ ABC-Analysis X
2008) ˗ Cost integrated with the
fuzzy logic
(Cavalieri et al., ˗ Criticality ˗ VED X X
2008) ˗ Characteristics and ˗ FSN
uncertainty supply
˗ Cost
˗ Demand v inability
˗ Item specific
(Porras and ˗ Criticality ˗ ABC-Analysis X
Dekker, 2008) ˗ Cost integrated with
weighted linear
˗ Volume and value demand optimisation.
(Teunter et al., ˗ Cost ˗ ABC-Analysis with X
2010) ˗ Volume and value demand SKUs (stock-keeping
units)
(Molenaers ˗ Criticality ˗ AHP and the logic of X
et al., 2012) ˗ Characteristic s and decision diagrams
uncertainty supply
˗ Cost
˗ Volume and value demand
Figure 4 Ordering policies according to the class of article (Silver et al., 1998)
The traditional method of classification of the most used spares in the majority of
industry is the ABC classification, this approach allows to classify the elements in order
of importance according to a single criterion. This has led researchers to extend the
traditional method of ABC classification to multi-criteria ABC classifications including
other parameters. A recent case study of Syntetos et al. (2009) used ABC-analysis to
characterise spare parts based on demand value for an electronics manufacturer. In
addition Syntetos and Boylan (2005) and Boylan et al. (2008) proposed a classification
based on the variability of demand and the control frequency through a two-dimensional
matrix, while Eaves and Kingsman (2004) proposed the distribution of the variance in
demand during the delivery time. Thus, Parodi and Pintelon (2007) combine two criteria
Models of spare parts inventories’ optimisation 103
‘item criticality’ and ‘item specificity’ into a bi-dimensional matrix to categorise spare
parts into four categories: non-critical items, strategic items, critical items and special
items. Teunter et al. (2010) have showed in their research that the ABC ranking criteria
as demand value and demand volume can lead to cost inefficient solutions for inventory
management. Different methods are proposed by different researchers to implement
multi-criteria ABC classifications, such as Ramanathan (2006), Partovi and Anandarajan
(2002), Zhou and Fan (2007), Ng (2007), Porras and Dekker (2008), and Chen et al.
(2006) proposed the use of ABC-analysis integrated with models like, fuzzy logic,
weighted Euclidean distances with quadratic optimisation, quali-quantitative hierarchical
classification of two or three dimensions, or Artificial Neural Networks (ANN) also used
by Sharma and Garg (2012).
The Vital, Essential, Desirable (VED) is a qualitative method based on consultation
with maintenance experts (Mukhopadhyay et al., 2003), this method could be a difficult
task, because its realisation can suffer subjective judgments of users (Cavalieri et al.,
2008), to limit this problem, VED can be combined with a systematic procedure to
classify parts. In the other hand, Gajpal et al. (1994) proposed VED classification model
based on the use of the analytic hierarchy method (AHP). This method (AHP) was
developed by Thomas Saaty in 1970 and used to break down a complex problem into a
hierarchical system, which establishes binary combinations at each level of the hierarchy.
Thus Braglia et al. (2004) used AHP multi-criteria classification method to classify the
spare parts.
Another quantitative method adopted by Cavalieri et al. (2008), based on the analysis
of the demand patterns and leads to a different kind of classification (mentioned as FSN;
F: fast-moving, S: slow-moving and N: non-moving), which is focused on the moving
rates of the spare parts (Mukhopadhyay et al., 2003). A recent study by Molenaers et al.
(2012) where they are based on the work presented by Braglia et al. (2004) and Syntetos
et al. (2009), to develop a decision diagram based on the critical point, and they used
AHP models. A major benefit of the AHP approach is that both qualitative and
quantitative criteria may be included in the classification system (Drzymalski et al.,
2010). Table 1 summarises the methods of multi-criteria classification for spare parts, as
well as the criteria used by each researcher.
that Croston approach is unusable in the case of obsolescence problems, they proposed to
update the probability of the application instead of the application interval. Whereas,
Porras and Dekker (2008) used the boostraping method for forecasting intermittent
demands. In fact, Willemain et al. (2004) conduct tests on industrial items, their results
show that the “bootstrap” produces better results than exponential smoothing and base
Croston method.
Thus, Zhou and Viswanathan (2011) proposed a simpler bootstrapping procedure,
this model showed superior performance when compared to Willemain’s. Rego and
Marco (2015) adopted a bootstrapping model similar to model of Zhou and Viswanathan
(2011) but including probabilistic lead-times. Hua and Zhang (2006) proposed an
application of the regression method for spare parts demand forecast, to predict the
occurrence of non-zero demands, and then to estimate lead-time demand. Thus, Gutierrez
et al. (2008) applied a neural network model to 24 time series showing lumpy demand
patterns, and their method performed better than single exponential smoothing, Croston’s
method and the Syntetos-Boylan approximation. In this area, Romeijnders et al. (2012)
proposed the forecasting method for spare parts in two stages that separately updates the
average number of parts needed for the repair and the number of repairs for each type of
component. Their results show that the two-step process is more efficient than the
method of Croston.
Furthermore, Moon et al. (2012) presented a case study to compare the performance
of different forecasting methods using prediction strategies and direct reporting to predict
the demand for spare parts. In a recent study by Moon et al. (2013), they used a
classification models such as, decision diagrams, artificial neural networks (ANN) and
Logistic Regression, to predict a higher prediction method for spare parts. Thus,
Heinecke et al. (2013) used the method of Croston and Syntetos Boylan-approximation
(SBA). In the other hand, Ghodrati and Kumar (2005) and Barabadi et al. (2014) used
reliability spare model including the operating condition for spares parts forecasting.
Table 2 summarises the spare parts demand forecasting models used by each researcher.
combined with periodic review ordering. While, Wang et al. (2008a, 2008b, 2009)
proposed joint condition based maintenance and continuous review (s, S) ordering policy.
In the same context, Wang (2012) used a typical (S,Q) policy in that ordering Q
according to inventory level S at the time of ordering under a fixed order interval, all
failed items are correctively replaced upon failure while all defective components are
preventively replaced upon inspection. Moreover, Ghorbel et al. (2012) proposed the
model (T, s*, S) which authorises forced replenishment and multi-period particle model
(mT, s*, S), where the period T becomes variable in order to ensure a replenishment at
lower cost. In a recent study, Panagiotidou (2014) used a periodic review policy (R, S),
where an order up to S is placed every R inspection intervals and a continuous review
policy (s, S), where an order up to S is placed whenever the available spare parts are less
than or equal to s. Table 3 summarises the models developed by the researchers cited in
this phase.
5.2 Joint optimisation models of the replenishment policies of spares parts and
repair capacity: literature review
There is only a limited amount of literature that mentions the importance of integrating
the spares parts inventory policies and repair capacity (De Smidt-Destombes et al., 2007,
2009). De Smidt-Destombes et al. (2004) investigated the trade-off between repair
capacity and spare part inventory control for a single k out-of N system under condition
based maintenance. In a later paper of De Smidt-Destombes et al. (2006) they considered
a k-out-of-N system with identical, repairable components under a condition-based
maintenance policy consists of replacing all failed and/or aged components. In this area,
De Smidt-Destombes et al. (2007) considered an installed base of k-out-of-N systems,
each consisting of identical, repairable components. A block replacement policy is used
to maintain each system and all components are repaired by a single repair shop.
There is little publication on the interaction between maintenance, spares part and
repair capacity. In this context, the other paper of De Smidt-Destombes et al. (2009)
developed a model for the joint optimisation of maintenance frequency, spare part
inventories, and spare part repair capacity for a single k-out-of-N system under
condition-based maintenance, and for an installed base of multiple identical k-out-of-N
systems.
While, another study choose another concept for the joint optimisation of spare parts
inventory and maintenance, for example the delay-time concept. In this area, Wang
(2011) used a two-stage failure process characterised by the delay-time concept to model
the failure and inspection processes, and he used a block-based inspection policy where
all components are inspected at the same time regardless of the ages of the components.
In another study, Wang (2012) used the order interval, preventive maintenance interval
and order quantity like the decision variables. Thus, all failed components are
correctively replaced upon failure while all defective components are preventively
replaced upon inspection.
In Table 3, we summarise the main recent references in the current literature for joint
optimisation models of spare parts inventory, maintenance policies, and repair capacity in
the last decade.
106
Table 3
6 Conclusion
Despite the increasingly relevant role of spare parts management in industries and its
related challenges, the research and business communities did not devote great attention
to the issue until recently. Very few studies, indeed, focus on reviewing the state of the
art of research advancements in this field, or on analysing managerial practices and the
discrepancies with research. First of all, a comprehensive literature review on research
about spare parts classification, spare parts demand forecasting, and joint optimising
models for spare parts inventory was undertaken. As can be concluded from the three
tables (Tables 1–3), there is a lack of attention to the problem of obsolescence, and the
number of spare parts failure, even if it can have a major influence on costs inventory
(Kennedy et al., 2002). And, it can be concluded that the joint optimisation of spare parts
inventories and maintenance seems to be beneficial compared to separate optimisation. In
the future, joint optimisation of inventory management of spare parts and maintenance
should definitely be studied in more detail. Firstly, we intend to develop a joint
optimisation model that considers the obsolescence problem of spare parts. And,
developed the joint optimisation model including the repair capacity of spare parts, to
maximise availability and minimise cost of spare parts. All these remarks may be of the
idea for future research. This work will serve all researchers interested in the field of
inventory management of spare parts, taking advantage and better identifying scientific
problems.
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