Title: A simulation-based method for inventory ownership planning of aircraft spare engines and parts

Authors: Jose Ramirez-Hernandez; Steven Oakley; Mei Zhang; Alejandro Scalise

Addresses: American Airlines, Inc., P.O. Box 619616, MD 5358, DFW Airport, TX 75261-9616, USA ' American Airlines, Inc., P.O. Box 619616, MD 5358, DFW Airport, TX 75261-9616, USA ' American Airlines, Inc., P.O. Box 619616, MD 5358, DFW Airport, TX 75261-9616, USA ' American Airlines, Inc., P.O. Box 619616, MD 5358, DFW Airport, TX 75261-9616, USA

Abstract: The planning of spare engines and engine parts is a challenging and critical task for airlines to seamlessly support flying and engine repair operations. Engines are expensive and critical assets that make this problem important from the financial and operational perspectives. Thus, this paper presents a simulation-based method for planning the required spare ownership levels for engine spares and engine parts. The models presented are utilised in single and multi-location settings and can be used to provide estimations of the minimum spare ownership required to meet given service levels and performance metrics based on out-of-service aircraft events. Two levels of modelling are provided: a higher level where the repairable items are the engines as a whole, and a lower level that focuses on the repair of the individual engine components. Two simulation studies with actual industry data are also presented to illustrate the application of our models.

Keywords: supply chain management; SCM; inventory planning; simulation; aircraft engines; engine parts; parts planning; spare parts; inventory management; aircraft engines; aircraft components; spare ownership; modelling; engine repair; component repair.

DOI: 10.1504/IJSPM.2016.082912

International Journal of Simulation and Process Modelling, 2016 Vol.11 No.6, pp.477 - 491

Available online: 14 Mar 2017 *

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