Success Story: Supply Chain Management

Initial Provisioning Optimizer

Airlines use external service providers to maintain their fleets. Maintenance, repair, and overhaul (MRO) are system-relevant tasks that require enormous planning effort. Unplanned outages (AOGs) are expensive and, above all, mean immediate obligations for the maintenance organization: Defective components must be replaced just-in-time and must be available on short notice worldwide. Most companies keep a large number of replacement components and specialists on hand for this purpose.

Goal

• Implementation of a tailored cost function that captures warehousing and delivery failures as well as the related issues.
• Cost reduction for the components held in stock while maintaining the same service level.

Challenges

• The interests of the parties involved are often conflicting: the airlines demand a globally high service level or protection level.
• On the other hand, the maintenance organization wants to keep the bound capital and the costs for delivery failures as low as possible.
• In addition, the warehouse topology must be included in the planning.