Gaining competitive advantage in spare parts logistics through inventory control based on optimization via simulation and data aggregation

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F25%3A00013621" target="_blank" >RIV/46747885:24310/25:00013621 - isvavai.cz</a>

Result on the web

<a href="https://www.cjournal.cz/files/580.pdf" target="_blank" >https://www.cjournal.cz/files/580.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.7441/joc.2025.02.04" target="_blank" >10.7441/joc.2025.02.04</a>

Result language

angličtina

Original language name

Gaining competitive advantage in spare parts logistics through inventory control based on optimization via simulation and data aggregation

Original language description

In this paper, we examine how a demand data aggregation affects the consumption of computational time in sporadic demand inventory control based on a past stock movement simulation (PSMS). PSMS represents a data-driven approach, which instead of estimating order lead time demand with help of a forecasting method rather focuses on a combinatorial optimization using an evolution of a replenishment process over a time. We simulate an all combinations search, a local search and modified local search together with (s, S) inventory control policy and a demand data aggregation ranging from 1 to 40 days using real daily demand data for 12,374 spare car parts covering a one-year period. The outputs from PSMS prove that an increasing data aggregation significantly shortens the time of searching for an s, S combination, ensuring the optimal trade-off between the fill rate and holding and ordering costs. However, the level of aggregation has to be set carefully, because once the positive effect of the aggregation is depleted, holding and ordering costs tend to increase rapidly according to growing average inventory. Acceleration through the data aggregation brings PSMS nearer to applications in extensive supply chain management real life tasks dealing with inventory control of products with sporadic demand.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2025

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Competitiveness>

ISSN

1804-171X

e-ISSN

—

Volume of the periodical

17

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

17

Pages from-to

88-104

UT code for WoS article

001550581100004

EID of the result in the Scopus database

2-s2.0-105017139682