Replacement and inventory control for a multi-customer product service system with decreasing replacement costs

doi:10.1016/j.ejor.2018.08.029

IMR OpenIR

	Replacement and inventory control for a multi-customer product service system with decreasing replacement costs
	Liu, Xinbao 1,3; Yang, Tianji 1,2,3,4,5; Pei, Jun 1,3; Liao, Haitao 2; Pohl, Edward A.2
通讯作者	Yang, Tianji(yangtianji@sia.cn)
	2019-03-01
发表期刊	EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
ISSN	0377-2217
卷号	273 期号:2 页码:561-574
摘要	In a Use-Oriented Product Service System, the customers pay for a particular service without owning the product, and the profitability of the service provider (usually also the owner of the product) is determined by the product availability and how replacement and inventory control are implemented. With the advances in modern sensor and wireless communication technologies, service providers can monitor the health status of each product in use and then conduct condition-based maintenance accordingly. Meanwhile, the waste of the remaining life of replaced products should also be considered in the system's operation due to the increasing concerns about environmental impact and lean production. To improve the profitability of a Use-Oriented Product Service System, we formulate a discrete-time Markov Decision Process that maximizes the long-term revenue per period. To overcome the computational challenge of this problem, we propose a sequential heuristic solution incorporating a heuristic replacement policy along with a heuristic inventory control approach to solve the integrated model. The heuristic replacement policy is derived from the optimal control policy for the subsystem of a single customer. The inventory control heuristic determines the target inventory level according to a one-period look-ahead myopic optimization policy. The performance of the proposed solution and some useful management insights are investigated in a numerical study. In addition, sensitivity analyses by varying the replacement costs, holding cost, unit service revenue and deterioration rates are also conducted. (C) 2018 Elsevier B.V. All rights reserved.
关键词	OR in service industries Production service system Replacement policies Inventory control
资助者	National Key R&D Program of China ; National Natural Science Foundation of China ; Innovative Research Groups of the National Natural Science Foundation of China ; Humanities and Social Sciences Foundation of the Chinese Ministry of Education ; Anhui Province Natural Science Foundation ; China Scholarship Council (CSC) ; Open Research Fund Program of Key Laboratory of Process Optimization and Intelligent Decision-making (Hefei University of Technology), Chinese Ministry of Education
DOI	10.1016/j.ejor.2018.08.029
收录类别	SCI
语种	英语
资助项目	National Key R&D Program of China[2018YFF0214704] ; National Natural Science Foundation of China[71601065] ; National Natural Science Foundation of China[71231004] ; National Natural Science Foundation of China[71690235] ; National Natural Science Foundation of China[71501058] ; National Natural Science Foundation of China[71671182] ; National Natural Science Foundation of China[71871080] ; Innovative Research Groups of the National Natural Science Foundation of China[71521001] ; Humanities and Social Sciences Foundation of the Chinese Ministry of Education[15YJC630097] ; Anhui Province Natural Science Foundation[1608085QG167] ; China Scholarship Council (CSC)[201606690008] ; Open Research Fund Program of Key Laboratory of Process Optimization and Intelligent Decision-making (Hefei University of Technology), Chinese Ministry of Education
WOS研究方向	Business & Economics ; Operations Research & Management Science
WOS类目	Management ; Operations Research & Management Science
WOS记录号	WOS:000452345600012
出版者	ELSEVIER SCIENCE BV
引用统计	被引频次：39[WOS] [WOS记录] [WOS相关记录]
文献类型	期刊论文
条目标识符	http://ir.imr.ac.cn/handle/321006/130762
专题	中国科学院金属研究所
通讯作者	Yang, Tianji
作者单位	1.Hefei Univ Technol, Sch Management, Hefei, Anhui, Peoples R China 2.Univ Arkansas, Dept Ind Engn, Fayetteville, AR 72701 USA 3.Minist Educ, Key Lab Proc Optimizat & Intelligent Decis Making, Hefei, Anhui, Peoples R China 4.Chinese Acad Sci, Shenyang Inst Automat, Shenyang, Liaoning, Peoples R China 5.Chinese Acad Sci, Inst Robot & Intelligent Mfg, Shenyang, Liaoning, Peoples R China
推荐引用方式 GB/T 7714	Liu, Xinbao,Yang, Tianji,Pei, Jun,et al. Replacement and inventory control for a multi-customer product service system with decreasing replacement costs[J]. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH,2019,273(2):561-574.
APA	Liu, Xinbao,Yang, Tianji,Pei, Jun,Liao, Haitao,&Pohl, Edward A..(2019).Replacement and inventory control for a multi-customer product service system with decreasing replacement costs.EUROPEAN JOURNAL OF OPERATIONAL RESEARCH,273(2),561-574.
MLA	Liu, Xinbao,et al."Replacement and inventory control for a multi-customer product service system with decreasing replacement costs".EUROPEAN JOURNAL OF OPERATIONAL RESEARCH 273.2(2019):561-574.