Inventory optimization for repairable products considering the increase of MTBF and field installation

Tongdan Jin, Fethi Belkhouche

Research output: Contribution to conferencePaperpeer-review

2 Scopus citations

Abstract

The impact of reliability growth on repairable inventory management is discussed and analyzed. A stochastic inventory optimization model is proposed to minimize the repair and delivery costs for defective parts considering the reliability growth and the increase of product installation in the field. Crow/AMSAA model is used to estimate the reliability growth trends: homogeneous Poisson failures (HPP) vs. non-homogenous Poisson failures (NHPP), based on which the demand for spare products is forecasted with the consideration of new product installation rate. To obtain the repair rate estimate for defective parts, the uncertainty of transition time to the repair center and the failure modes are appropriately combined using the central limit theorem, based on which the mean and the standard deviation of the repair rate are estimated. Given the reliability growth rate and the stochastic repair rate, an optimization is formulated to minimize the repair cost while subject to the requirement of the service quality index. Finally the proposed inventory optimization model is demonstrated on a type of semiconductor test equipment.

Original languageEnglish (US)
Pages1500-1505
Number of pages6
StatePublished - 2007
EventIIE Annual Conference and Expo 2007 - Industrial Engineering's Critical Role in a Flat World - Nashville, TN, United States
Duration: May 19 2007May 23 2007

Other

OtherIIE Annual Conference and Expo 2007 - Industrial Engineering's Critical Role in a Flat World
CountryUnited States
CityNashville, TN
Period5/19/075/23/07

All Science Journal Classification (ASJC) codes

  • Industrial and Manufacturing Engineering

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