Modeling Logistics of Maintenance Repair and Operations in Large Facilities

In this paper, we study maintenance service operations in large facilities with a focus on modeling logistics of associated spare parts and their storage locations. This is motivated by the operational needs of maintenance of large facilities consisting of hundreds of buildings across multiple locations that are serviced by hundreds of personnel from several distinct trades who move around buildings in their vehicles. The key challenge in managing such large operations is to generate costs savings by reducing assets and shortage costs in terms of spare parts inventory and vehicles while providing highly responsive customer service. This challenge is compounded when the building stock is heterogeneous in terms of age and equipment technologies used. To address these challenges, we propose (i) inventory models to determine stock levels; (ii) storage space in personnel vehicles to allocate the mix and location of spare parts by trade. The two models can be readily integrated and conceptually technician vehicles serve as “forward-reserve storage” that improves service responsiveness but has limited storage capacity. The proposed model is applied to a large facility of a non-profit organization with 330 buildings, 17,000 spare parts, and 254 vehicles. Compared to prevailing practice, the proposed model can potentially reduce $1.27 million worth of inventory costs, a reduction of ~77%.

Advisor Name: Dr. Vittaldas Prabhu Advisor Title: Professor

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Work Title Modeling Logistics of Maintenance Repair and Operations in Large Facilities
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Penn State
Creators
  1. Chirag Mishra
  2. Kai-Wen Tien
  3. Vittaldas V Prabhu
Keyword
  1. Spare Parts + Inventory Management + Forward-Reserve + MRO Inventory
License In Copyright (Rights Reserved)
Work Type Research Paper
Publication Date 2021
Deposited July 20, 2021

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  • Added Creator Chirag Mishra
  • Added Creator Kai-Wen Tien
  • Added Creator Vittaldas V Prabhu
  • Added Modeling Logistics of Maintenance Repair and Operations in Large Facilities (MS Paper) Final.pdf
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