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.

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reduction in capital commitment

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.

Solution

  • The solution IPO from mi Solutions optimizes the stocking of spare parts and takes all relevant aspects into account.
  • Modern methods of operations research, combinatorial optimization and AI are used for this.
  • Successful modeling of a process that cannot be mapped correctly in the existing ERP system.
  • In addition, IPO makes it possible to simulate the effects of the selected warehouse configuration and thus verify the results.
  • Possibility of using sensitivity analysis to investigate the consequences of uncertain input data on the selected warehouse configuration.

Result

  • Global optimization of stock levels with simultaneous consideration of all locations
  • Achievement of a defined service or protection level
  • Compliance with budget ceilings
  • Compliance with an upper cost limit for delivery failures
  • Consideration of the current stock situation
  • Achieving a higher service level with an identical budget
  • Verification of the results through simulation and analysis overview

Your Contact

Carlos Ayala Jiménez

Carlos Ayala Jiménez

Phone:  +49 1516 2 60 74 21

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