Optimize reordering of critical raw materials and parts

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05.01.2011 | Goti, A., University of Mondragon, Guipuzcoa, Spain; Zabaleta, N. , University of Mondragon, Spain; Garcia, A. , Polytechnic University of Madrid, Spain; Ortega, M. , Polytechnic University of Madrid, Spain; Uradnicek, J. , Slovak University of Technology, Bratislava, Slovakia

New models evaluate the ‘total’ costs in receiving and storing materials for a refinery

Keywords: [maintenance] [model] [spare parts] [economics] [asset] [management] [inventory]

Optimizing the reordering of raw materials and maintenance spare parts is a problem extensively studied in the academic field, but poorly solved. This project focuses on the problem of reordering points and batch sizes via a commercial discrete-event simulation software. A product for reordering points was developed and tested. It was successfully used to optimize the reordering points and batch sizes of several critical spare parts for a refinery. The satisfactory results enabled reducing the total ordering, storage and backorder costs.

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