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Customer Information Driven After Sales Service ... - RePub

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2.3. Strategic Decisions for <strong>After</strong> <strong>Sales</strong> <strong>Service</strong> Management<br />

2.3.2 Spare Parts Logistics Network Design<br />

In this task, the spare parts logistics manager has to decide on the positioning of the<br />

spare parts stocking facilities throughout the geographical network. Spare parts logistics<br />

network design problems can be considered as a special class of generic logistics network<br />

design problems. Similar to maintenance services management, the exact terms of<br />

warranty / service requirements and customer base characteristics in after sales service<br />

impact the design of the logistics network.<br />

Distribution Network - 1<br />

CDC<br />

Suppliers DC / Depot Field Locations<br />

CDC<br />

Suppliers Field Locations<br />

DC<br />

DC<br />

DC<br />

Distribution Network - 3<br />

Emergency Shipment<br />

Replenishment Source<br />

Distribution Network - 2<br />

Suppliers DC / Depot Field Locations<br />

Suppliers Field Locations<br />

DC<br />

DC<br />

DC<br />

Distribution Network - 4<br />

Figure 2.3: Spare Parts Logistics Network (Source: Cohen and Agrawal (1999))<br />

Cohen et al. (1997); Cohen and Agrawal (1999); Cohen (2009) discuss the existing<br />

and emerging trends in spare parts logistics network design. Figure 2.3 depicts various<br />

types of logistics networks that are commonly observed in practice. A three echelon<br />

network consists of a central distribution center (CDC), one or many regional distribution<br />

centers (DCs) and multiple field stock locations (FSLs). A two echelon structure differs<br />

29

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