Justification of Service Policy Parameters for Spare Parts Supply Using Agent-based Simulation

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MAGAZINE  №3 (92) June 2019

AUTHORS 

GOBEDZHISHVILI K.A. - Lecturer, Department of Information Systems and Technologies in Logistics, National Research University Higher School of Economics (Moscow, Russia)

ZAKHODYAKIN G.V.  - Senior Lecturer, Department of Information Systems and Technologies in Logistics, National Research University Higher School of Economics (Moscow, Russia)

CATEGORY Logistics service management Simulation modelling Inventory management

ABSTRACT

Russian mining industry experiences a rapid growth providing an attractive market for suppliers of mining equipment. However, it is a customer-dominated market. The customers set stringent requirements for the initial equipment supply, as well as for the after-sale service and spare parts supply. The manufacturers of mining equipment are thus facing the need to rigorously analyze their supply chain, to develop a reasonable customer service policy and to adjust the supply chain to meet the requirements of the service policy. To fulfill the after-sale maintenance requirements, the manufacturers must stock spare parts within the supply chain and to design inventory control policies. This paper presents an agent-based simulation approach for estimation of the supply chain key performance indicators and to explore the service – cost trade-off. The conceptual model and the description of its implementation in Anylogic 8.4 software are provided. A case-study of a global mining equipment manufacturer's branch operating in Russia is described. The model is used to estimate the inventory
control policy parameters required to meet the target customer service level, to compare make-to-order against make-to-stock supply strategies, as well as to explore the service level – cost trade-off.

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ISSN 2587-6775

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