A Logistics Network Design Problem for a Spare Part System

This paper is about logistics network design for spare parts of certain aircrafts. In this paper, the problem is to setup a logistics network for spare parts of ten aircrafts in order to provide spare parts with 85 % availability performance to the bases air vehicle operates. Availability of these spare parts have critical importance for aircrafts to operate properly. This logistics support concept transfers traditional inventory and supply chain functions for a guaranteed level of spare part availability performance. These aircrafts deploy on three different bases, X, Y and Z. There will be four aircrafts in Y and X and two aircrafts in Z. For solution approach, five alternative logistics networks are stated. Four of these supply network alternatives is single echelon and one of them is two-echelon setting. Then, these alternative logistics networks are compared according to their costs including inventory holding, warehouse location, transportation and overhead costs.