Spare parts recommendation for corrective maintenance of capital goods considering demand dependency

We consider a maintenance service provider that services geographically dispersed customers with its local service engineers. Traditionally, when a system failure is reported, a service engineer makes a diagnostic visit to the customer's location to perform corrective maintenance. If spare parts are required, they are ordered and a second...

How good must failure predictions be to make local spare parts stock superfluous?

Thanks to Industry 4.0 technologies, predictive algorithms can provide advance demand information on spare parts demand. Understanding how the goodness of predictions affects on-hand inventory and costs is important for decision makers before integrating these models into existing systems. We consider a spare parts inventory problem for multiple...