A facility location and installation of resources model for level of repair analysis

The Level of Repair Analysis – LORA – is an analytic methodology aimed at determining: (i) the optimal location of facilities that compose a maintenance structure; (ii) the quantity of required resources in each facility; and (iii) the best repair policies, i.e., rules that determine if a given component should be discarded or repaired, and where those actions should take place. This work presents a mixed-integer programming model for LORA that is more comprehensive than others in the literature, being suitable to many practical situations. The model was applied to 15 substantial real world problems, and considering distinct maintenance policies to some of them, resulted in 22 different solutions, all of which could be achieved by a commercial Mixed-Integer Programming (MIP) solver in reasonable times.