Inventory Replenishment Policy for Corrective Maintenance Spare Part Inventory of Multiple Machines with Different Failure Rates
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Abstract
The research is to determine the proper replenishment policy for corrective maintenance spare part inventory of multiple machines with different failure rates. All failure machines require the same type of spare part but with different quantities. The objective is to evaluate proper replenishment quantity, at a predetermined time between orders, such that the total cost composed of item cost, holding cost, depreciation cost, and shortage cost is minimized. From the characteristic of fixed order interval model, the replenishment quantity is the difference between the maximum inventory level and the inventory stock position at the time of placing the order. The maximum inventory level is ascertained according to the optimal probability of stock out determined by taking the derivative of the total system cost function. The result obtained from the proposed model is compared to the result yielded from the Monte Carlo simulation model at different levels of three factors: the number of machines (2 levels), the shortage costs (3 levels), and the failure rates (3 levels). According to the study result, both proposed calculation model and Monte Carlo simulation model suggest the same values of maximum inventory level for all 18 different problem cases. The maximum inventory level tends to increase at higher level of each factor.
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