University of Twente Student Theses


Using dual-sourcing for ordering spare components

Menningh, C.R. (2020) Using dual-sourcing for ordering spare components.

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Abstract:Pool Koudetechniek creates and maintains cooling installations. All installations are slightly different from each other and require slightly different components. To perform maintenance and repairs, Pool Koudetechniek has many spare components in its inventory and wants to find a way to reduce their inventory. This research looks into a potential inventory management policy. By exploring dual-sourcing as an alternative way of ordering spare components, this research researches a dual-index policy (DIP) to change the current inventory management policy. Using the historic purchasing data from a small group of spare components, the average demand of these spare components was determined. The demand is found to be Poisson distributed. This is used to model the demand in the DIP model. After analyzing the demand from historic data, the safety stocks and order-up-to levels are determined. In order to compare the current policy and a proposed policy using DIP, a simulation model is created to simulate the inventory policy. By using a Monte Carlo simulation, the current policy is compared against a DIP policy. Switching to DIP will increases the total costs and reduces the service levels. Therefore, Pool Koudetechniek is suggested to first test DIP on other types of spare components. Only then can be decided whether changing the inventory management system into a DIP is beneficial.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:58 process technology
Programme:Industrial Engineering and Management BSc (56994)
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