On two-echelon inventory systems with Poisson demand and lost sales

We derive approximations for the service levels of two-echelon inventory systems with lost sales and Poisson demand. Our method is simple and accurate for a very broad range of problem instances, including cases with both high and low service levels. In contrast, existing methods only perform well for limited problem settings, or under restrictive assumptions.\u

Spare Parts And Maintenance Optimization In A Mobile Telephone Company

(WP12/02 Clave pdf) Telecommunication companies depend on high availability of equipment to maintain service quality. In cellular communications electronic cards maintenance is basically reduced to exchanging parts as they fail. These parts are geographically dispersed in unmanned locations. Spares and maintenance policies are thus interrelated and tend to follow multiechelon configurations, following the architecture of the physical network. We describe the optimization of spare parts and maintenance policies performed by the Venezuelan mobile phone operator Movilnet.Mobile phone, MRO, Multi-echelon inventory systems, Spare parts optimization

Allocating service parts in two-echelon networks at a utility company

We study a multi-item, two-echelon, continuous-review inventory problem at a Dutch utility company, Liander. We develop a model that optimizes the quantities of service parts and their allocation in the two-echelon network under an aggregate waiting time restriction. Specific aspects that we address are emergency shipments in case of stockout, and batching for regular replenishment orders at the central warehouse. We use column generation as a basic technique to solve this problem, and use various building blocks for single-item models as columns. Further, we study options to derive simple classification rules from the solution of our multi-item, two-echelon service part optimization problem using statistical techniques. Application of our models at Liander yields a solution that reduces costs by 15% and decreases the impact of waiting time for service parts by 52%