Service and inventory model for maintenance workshop in the short cycle operation region: Agent-based simulation approach

Abstract

Abstract Tools used in the North Sea region has a high cycle and come very often to maintenance workshop to be checked, repaired if needed and prepared for the next operations. The availability of spare parts at the workshop plays a significant role to keep the flow time as short as possible and meet such high-cycle operations. Supplying spare parts from the best-cost countries to the North Sea region with about one-year lead time makes the situation more critical and the economic order quantity and reorder point need to be found. However, having inventory at the workshop and ordering a batch of spare parts increases operational expenditures. Moreover, frequent supplies increase the environmental impacts of shipping CO2 and spare scrap rates, whereas repairing the used spare parts and reusing them again can offer a more sustainable solution. Therefore, the purpose of this paper is to develop a simulation model that can quantify the cost and benefits of reusing repaired spares compared to supplying newly built spares from the best-cost countries. To achieve this purpose, a case study has been implemented on a specific maintenance workshop within the North Sea region and the entire tool repair and spare part supply operations are conceptualized and modelled with the help of the simulation modelling approach. Two scenarios have been simulated: (1) the maintenance workshop fully depends on supplying newly built spares from the best-cost countries with no inventory stock or spare reuse, and (2) the Maintenance workshop is primarily dependent on repaired spares with an optimal level of spares stock. The simulation results, from the studied case, support the second scenario where a repair path cycle is introduced to the maintenance workshop, as a 78% reduction in lead times, a 116% improvement in worker utilization, a 73% reduction in crowding levels, a 52% reduction in scrap rate, and a potential profit increase of roughly three million NOK (20%). Therefore, it can be concluded that a local repair service is required to keep maintenance workshops in high-cycle regions at high-performance levels.