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A network approach modeling of multi-echelon spare-part inventory system with backorders and quantity discount

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Abstract

One of the most important aspects of multi-echelon inventory management deals with spare part; because, in the real world, it is more economic to repair equipment than change them. Also, it is possible, when more spare parts bought from an external supplier; seller gives quantity discount for all units. So, this paper considers a multi-echelon spare-part inventory system with backorders and quantity discount of external suppliers. Furthermore, a network approach is applied for modeling and solving these problems. Numerical example shows the efficiency of this algorithm.

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Authors and Affiliations

  1. Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran

    Parvaneh Samouei, Amir Saman Kheirkhah & Parviz Fattahi

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  1. Parvaneh Samouei
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  2. Amir Saman Kheirkhah
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  3. Parviz Fattahi
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Correspondence to Parvaneh Samouei.

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Samouei, P., Kheirkhah, A.S. & Fattahi, P. A network approach modeling of multi-echelon spare-part inventory system with backorders and quantity discount. Ann Oper Res 226, 551–563 (2015). https://doi.org/10.1007/s10479-014-1718-z

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  • DOI: https://doi.org/10.1007/s10479-014-1718-z

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