Doctoral Thesis Spare Parts Management of Aging Capital Products

Defended on Thursday, 26 November 2015

Abstract

Spare parts are critical for operations of capital products such as aircraft, refineries, trucks, etc/, which require maintenance regularly. Original Equipment Manufacturers (OEMs) bear the responsibility of undisrupted maintenance service and spare parts flow for their capital products. Due to various factors OEMs lose their spare parts suppliers occasionally and these losses threaten the reliability of their maintenance service and capital products. In this thesis, we consider supply risk in management of spare parts inventory. The thesis consists of two parts: First we develop advance indicators for future supply problems of spare parts and suggest a model utilizing those indicators for inventory control of spare parts. Our results indicate that OEMs can save significantly by utilizing those indicators together with our model in their daily business. Second, we consider secondary markets and their effects on spare parts supply chains of OEMs. Secondary markets are chap supply sources for spare parts needs of OEMs. Therefore effective usage of them yield significant cost savings and boost service rate of OEMs. Furthermore, secondary markets are sources of competition since low prices on those markets attract some customers of OEMs. These two factors are considered from the perspective of spare parts inventory control. In the second part, we conclude that  for OEMs it is beneficial to use secondary markets as a supply source  as long as they adjust their selling prices accordingly.

Keywords

Spare parts, supply risk, secondary markets, empirical analysis, inventory control, dual sourcing, pricing

Time frame

2011 - 2015

Author

Mustafa Hekimoglu
Mustafa Hekimoglu

Supervisory Team

Rommert Dekker
Professor of Econometrics (Operations Research and Informatics)
  • Promotor
Erwin van der Laan
Associate Professor of Logistics & Operations Management
  • Daily Supervisor

Committee Members

Geert-Jan van Houtum
Geert-Jan van Houtum
Roelof Kuik
Roelof Kuik
Associate Professor in Quantitative Methods in Supply Chain Management
Henk Zijm