Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
476934 | European Journal of Operational Research | 2011 | 9 Pages |
In this paper, to serve different fleets of machines at different locations, we study whether repair shop pooling is more cost effective than having dedicated on-site repair shops for each fleet. When modeling the former alternative, we take transportation delays and related costs into account and represent it as a closed queueing network. This allows us to include on-site spare-part inventories that operate according to a continuous-review base-stock policy. We obtain the steady-state distribution of components at each location and the cost of the system with a pooled repair shop by applying the Mean-Value Analysis technique. Our numerical findings indicate that when transportation costs are reasonable, repair shop pooling is a better alternative.
► We study repairshop pooling for fleets of machines at different locations. ► We model this system as a closed queueing network. ► Transportation delays and costs are incorporated in our model. ► When transportation costs are reasonable, repair shop pooling is cost-effective. ► Higher down time costs and less reliable machines make repairshop pooling beneficial.