A scenario-based stochastic programming approach for aircraft expendable and rotable spare parts planning in MRO provider

Yichen Qin · Hoi‐Lam Ma · Felix T.S. Chan · Waqar Ahmed Khan

19 citations0/0 files storedIndustrial Management & Data Systems

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Supply Chain and Inventory Management Reliability and Maintenance Optimization Management and Optimization Techniques

Abstract

Purpose This paper aims to build a novel model and approach that assist an aircraft MRO procurement and overhaul management problems from the perspective of aircraft maintenance service provider, in order to ensure its smoothness maintenance activities implementation. The mathematical model utilizes the data related to warehouse inventory management, incoming customer service planning as well as risk forecast and control management at the decision-making stage, which facilitates to alleviate the negative impact of the uncertain maintenance demands on the MRO spare parts inventory management operations. Design/methodology/approach A stochastic model is proposed to formulate the problem to minimize the impact of uncertain maintenance demands, which provides flexible procurement and overhaul strategies. A Benders decomposition algorithm is proposed to solve large-scale problem instances given the structure of the mathematical model. Findings Compared with the default branch-and-bound algorithm, the computational results suggest that the proposed Benders decomposition algorithm increases convergence speed. Research limitations/implications The results among the same group of problem instances suggest the robustness of Benders decomposition in tackling instances with different number of stochastic scenarios involved. Practical implications Extending the proposed model and algorithm to a decision support system is possible, which utilizes the databases from enterprise's service planning and management information systems. Originality/value A novel decision-making model for the integrated rotable and expendable MRO spare parts planning problem under uncertain environment is developed, which is formulated as a two-stage stochastic programming model.

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References

2019The mean-variance approach for global supply chain risk analysis with air logistics in the blockchain technology era 2020A robust fuzzy stochastic programming for sustainable procurement and logistics under hybrid uncertainty using big data 2009A review of coordination studies in the context of supply chain dynamics 2014Efficient aircraft spare parts inventory management under demand uncertainty 2018Supplier integration and firm performance: the moderating effects of internal integration and trust 2018Sustainable stochastic production and procurement problem for resilient supply chain 2018Two-stage stochastic programming approach for the medical drug inventory routing problem under uncertainty 2017Smart spare parts management systems in semiconductor manufacturing

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2023Analysing the impact of collaborations between airlines and maintenance service company under MRO outsourcing mode: Perspective from airline's operations

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