Repairable spare part supply chain: A hybrid priority-based particle swarm approach

Document Type : Research Paper

Authors

1 Department of Management and Economics, Science and Research Branch, Islamic Azad University Iran University of Science and Technology, Tehran, Iran

2 School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Abstract

The industry life highly depends on spare parts since it is vital to perform maintenance operations, especially in strategic industries. The expensive and low-demand spare parts are a must for the continuation of the production; therefore, they are held in warehouses to meet unexpected demand. These spare parts cause high inventory costs also they require human resources, energy, and budget for the repair operations. It is important to point out that separate optimization of decisions in spare part supply chain leads to sub-optimality so, an integrated mathematical model can outperform a routine model. In this paper, we present a network design and planning model that is integrated with the METRIC model (Multi-Echelon Technique for Recoverable Item Control) that formulates inventory management decisions of the repairable spare parts. This model covers different decisions such as supplier order assignment, stock level in warehouses, flows among the facilities, and location of facilities. Due to the np-hardness of the problem, a hybrid approach is presented that incorporates heuristic and meta-heuristic methods. This approach is used to solve the proposed model that has been never applied in previous researches for such a model.

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