Abstract The supply of spare parts has a crucial role in the aviation sector, mainly due to the high costs of spare parts and to the strict availability requirements. In a stand-alone scenario, an airline owns the spare parts and manages the maintenance tasks by itself. A new trend consists of not owning the spare parts and delegate the maintenance tasks to an external company, taking advantage of a specific Performance Based Contract (PBC). The PBCs aim to reduce the ownership cost for the customer airline, while ensuring a target system performance. Spare parts become a variable cost for the customer airline and a business income for the maintenance supplier, which is commonly another airline. This paper proposes an innovative model, i.e. the PBC-METRIC, which supports the customer airline manager to minimize the spare parts supply cost, in compliance with the airline availability requirements and with respect to the PBC. In detail, the PBC-METRIC models a multi-echelon, multi-item, single-indenture, multi-transportation network, by an innovative two-steps algorithm, defining the PBC specifications as modelling variables and parameters. A case study on a European airline, with the role of customer in a PBC, illustrates the outcome of the model.
Highlights We define an original METRIC model for a customer airline in a PBC. We solve the model introducing an innovative two steps methodology. We present a genetic algorithm to solve the optimization problem. A case study of a European airline illustrates the features of the model.
Inventory optimization for a customer airline in a Performance Based Contract
Journal of Air Transport Management ; 57 ; 206-216
2016-08-10
11 pages
Article (Journal)
Electronic Resource
English
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