Impact of Parameter Changes in a Service Provider Closed-Loop Supply Chain with Customer-Owned-Stock

Spare part supply for aircraft must be quick and reliable. To reduce costs for spare part supply and aircraft life-cycle costs, broken parts are repaired and put back into stock. Airlines outsource the spare parts provisioning to maintenance, repair, and overhaul providers (MRO) because common spare part pooling saves costs. At their hub, airlines keep one piece of a crucial spare part for immediate replacement of failed parts. Up to now MRO-providers do not take into account the customer-owned stock, when planning their inventory levels. This causes over-stocking at the central warehouse.

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