The Optimal Service Levels of Final Order for Auto Service Parts
The importance of after-sale services is greatly emphasized as the market competition becomes fierce. Among them, the service parts not only provide product after-sale service but also play an important role in competing with competitors in the future. Especially, the supplier of service parts may no longer manufacture the parts after the certain period of time before the end of service period due to production economics. Therefore, the after-sale service providers must place a final order for the service parts to meet future demand before the final production of service parts Hence, this study first establishes a Poisson regression model for individual service part in the end of product life cycle with declining demand. Next, a FCM method is applied to clustering service parts into different groups based on their cost and essentiality such that different service level priorities can be assigned to the groups in order to provide effective inventory management. Furthermore, the newsvendor model considering dead stock cost and lost-sale cost under the aggregate service level constraint is developed to determine the optimal order quantity for each group. Finally, we use the real data provided by a local auto company to compare our model with the current practice of this company. The results show that our model can reduce dead stock cost effectively and meets requested customer service levels for various kinds of service parts.
Final Order Service Level Poisson Regression Fuzzy C-Means Newsvendor model
Ruey-Shan Guo David Chiang Jia-Ying Chen Chi-An Teng
Department of Business Administration, National Taiwan University
国际会议
香港·广州
英文
522-528
2010-07-25（万方平台首次上网日期，不代表论文的发表时间）