Journal article
Determining Optimal Order Amount for End-of-Life Parts Acquisition with Possibility of Contract Extension
The Engineering economist, Vol.59(4), pp.259-281
10/02/2014
DOI: 10.1080/0013791X.2014.903449
Abstract
Manufacturers often encounter difficulties in supplying an adequate number of spare parts for a product in its postproduction phase. As a result, manufacturers will sometimes make one final order of a model of spare part that is used to satisfy any demand for the spare part going forward. The problem is compounded when a customer may request an extension to the maintenance or supply contract for which the part is supplied. We present two possible approaches for dealing with the problem: one involves the use of a continuous-time dynamic program that allows for the possibility of salvage, and the other makes use of a two-stage stochastic algorithm that does not consider salvage.
Details
- Title: Subtitle
- Determining Optimal Order Amount for End-of-Life Parts Acquisition with Possibility of Contract Extension
- Creators
- Nicholas W. Leifker - St. John Fisher CollegePhilip C. Jones - University of IowaTimothy J. Lowe - University of Iowa
- Resource Type
- Journal article
- Publication Details
- The Engineering economist, Vol.59(4), pp.259-281
- DOI
- 10.1080/0013791X.2014.903449
- ISSN
- 0013-791X
- eISSN
- 1547-2701
- Publisher
- Taylor & Francis
- Number of pages
- 23
- Language
- English
- Date published
- 10/02/2014
- Academic Unit
- Business Analytics
- Record Identifier
- 9984963200602771
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