Internal dynamics of the short-term commercial aircraft engine leasing market

General trends in the commercial aircraft aftermarket indicate an increased reliance of leased engines in operators' spare engine strategies. A methodology for forecasting short-term engine lease demand is developed using Pratt & Whitney's existing simulation capability. This method demonstrates the ability to estimate demand mean and variance. This forecast is then used in a single SKU inventory model to set inventory levels. Using historical data this method demonstrates the ability to recommend inventory levels that minimize stock outs. A less computationally intensive system dynamics model is then constructed to replicate the lease demand forecasting model. Sensitivity analysis is performed using the system dynamic model and influential parameters are identified. The results of the sensitivity study are used to propose and test a new sales strategy for short-term engine lessors.

Department dc:contributor.department

Leaders for Global Operations Program at MIT

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2016

Author dc:creator

• Kellogg, Erin C

Advisor dc:contributor.advisor

• Hazhir Rahmandad and Hamsa Balakrishnan.

• Sloan School of Management.
• Aeronautics and Astronautics.
• Leaders for Global Operations Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/104566

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/104566