Spares provisioning under performance-based logistics contract

Profit-centric approach

D. Nowicki, U. D. Kumar, H. J. Steudel, Dinesh Verma

Research output: Contribution to journalArticle

50 Citations (Scopus)

Abstract

Performance-based logistics (PBL) is emerging as a preferred logistic support strategy within the public sector, especially the Department of Defence. Under a PBL strategy, the customer buys performance, such as operational availability, mission readiness and operational reliability, instead of contracting for a specified collection of resources defining the underlying support infrastructure. The literature on PBL is still in its infancy and additional research is required to optimize logistic resources such as spare parts, equipment, facilities, labour etc within a PBL context. In this paper, an optimization model is developed for spares provisioning under a multi-item, multi-echelon scenario. The objective of the optimization model is to maximize the profit to the supplier under a PBL contract.

Original languageEnglish (US)
Pages (from-to)342-352
Number of pages11
JournalJournal of the Operational Research Society
Volume59
Issue number3
DOIs
StatePublished - Mar 1 2008

Fingerprint

Logistics
Profitability
Performance-based contracting
Underperformance
Provisioning
Profit
Availability
Personnel
Optimization model
Resources

All Science Journal Classification (ASJC) codes

  • Marketing
  • Management Information Systems
  • Strategy and Management
  • Management Science and Operations Research

Cite this

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Spares provisioning under performance-based logistics contract : Profit-centric approach. / Nowicki, D.; Kumar, U. D.; Steudel, H. J.; Verma, Dinesh.

In: Journal of the Operational Research Society, Vol. 59, No. 3, 01.03.2008, p. 342-352.

Research output: Contribution to journalArticle

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