A heuristic to minimize the inventory value of repairable parts with service constraints: Application to an airline company

Manuel Cardós, Eugenia Babiloni, Marta E. Palmer, Ester Guijarro

Abstract


Purpose: 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.



Keywords


inventory management, airline industry, ABC classification

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DOI: http://dx.doi.org/10.3926/jiem.564


Licencia de Creative Commons 

This work is licensed under a Creative Commons Attribution 4.0 International License

Journal of Industrial Engineering and Management, 2008-2019

Online ISSN: 2013-0953; Print ISSN: 2013-8423; Online DL: B-28744-2008

Publisher: OmniaScience