Inventory models for fast moving spare parts subject to “sudden death” obsolescence

Simple inventory models are developed for fast moving spare parts subject to the risk of unexpected, immediate obsolescence. The approach does not require a precise knowledge of the probability distribution of the moment of obsolescence, as is the case for models discussed in the literature. A rough...

Full description

Saved in:
Bibliographic Details
Published in:International journal of production economics 1996-07, Vol.44 (3), p.239-248
Main Authors: Cobbaert, Koen, Van Oudheusden, Dirk
Format: Article
Language:English
Subjects:
Component parts
Economic models
Inventory management
Obsolescence
Obsolescence risk
Operations research
Studies
“Sudden death” obsolescence
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Simple inventory models are developed for fast moving spare parts subject to the risk of unexpected, immediate obsolescence. The approach does not require a precise knowledge of the probability distribution of the moment of obsolescence, as is the case for models discussed in the literature. A rough estimate of the obsolescence risk for the next order cycle is sufficient. The models can be seen as extensions of the EOQ-formula. Following cases are studied: 1. 1. Constant obsolescence risk; no shortages allowed 2. 2. Varying obsolescence risk; no shortages allowed 3. 3. Varying obsolescence risk; shortages allowed It appears that the models are practicable and, in the proper circumstances, lead to a substantial reduction of cost.
ISSN:0925-5273
1873-7579
DOI:10.1016/0925-5273(96)00062-X