Success Story Supply Chain Management

Spare Part Provisioning for Airlines

Provisioning spare parts is of high relevance for airlines. It is one of the biggest logistical challenges, both economically and in terms of safety. If a crew detects a defect, they must react quickly regardless of their location in order to avoid high costs and downtime.

The reparability, replacement time and cost of the component play a role here. But so does the distance to storage locations worldwide.

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reduction of downtime costs without increasing the storage volume

Goals

  • The repair-related downtime of an aircraft has to be kept as short as possible
  • Cost reduction through the fastest possible repair time
  • Minimize the stocking of spare parts to reduce capital costs
  • Shortening the repair cycle
  • Creation of reliable demand forecasts

Challenges

  • The airlines’ MROs must keep spare parts in stock worldwide in order to avoid or at least minimize downtime
  • It is not obvious which spare part mix must be kept in stock and in what quantities to best achieve business goals
  • Maintaining the service level (maintaining or increasing the proportion of satisfied requests for spare parts)

Solution

  • Algorithms in mi Solutions’ STAN help to break down the individual requests
  • Factors such as costs, constraints and objectives are recorded and structured
  • Allocation of requirements with statistical models
  • Combinatorial optimization algorithms for the allocation of spare parts to storage locations
  • Maintaining or increasing the service level, taking into account key factors such as time/delivery deadline and urgency
  • Weighing up time factor repair vs. replacement

Result

The idle time during aircraft repair processes is associated with high costs for airlines, which is why local spare parts stocks are essential. These times can be reduced if sufficient parts are available, but a high surplus of replacement components would also tie up capital.

mi Solutions‘ STAN is able to solve this problem by intelligently allocating the components to the warehouses, thereby achieving a high service level and significantly reducing the costs of inventory. 

Your Contact

Carlos Ayala Jiménez

Carlos Ayala Jiménez

Phone:  +49 1516 2 60 74 21

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