Simulation Model of Multi-Echelon Closed Supply Chain for Spare Parts

Abstract

The models for spare parts supply in existing literatures predominantly address analytical models. The dominant model in practical applications is the METRIC, which has been extensively used even nowadays although it understates the backorders at the base and consequently overstates system availability. However, even the most recent models have restrictions to their successful application. To surpass some of the limitations of those models we develop a simulation model to manage the spare parts in a multi-echelon closed supply chain system in this paper, and evaluate the system performance with expect backorder and supply availability. Experiments show the model works well and efficiently.