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.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Inventory optimization for a customer airline in a Performance Based Contract



    Published in:

    Publication date :

    2016-08-10


    Size :

    11 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




    Airline inventory control

    Farthing, E.G. | Engineering Index Backfile | 1960



    Intelligent Airline Seat Inventory Control System

    Teodorovic, Dusan | Online Contents | 2002



    Intelligent Airline Seat Inventory Control System

    Teodorovic, Dusan / Popovic, Jovan / Pavkovic, Goran et al. | Taylor & Francis Verlag | 2002