APPLIED MATHEMATICAL MODELLING, v. 31, No. 5, Page. 795-804
We consider the problem of determining the initial spare inventory level for a multi-echelon repairable item inventory system. We extend the previous results to the system, which has an inventory at the central depot as well as at bases and with a general repair time distribution. We propose an algorithm which finds spare inventory level to minimize the total expected cost and simultaneously to satisfy a specified minimum service rate. Extensive computational experiments show that the algorithm is accurate and efficient. (c) 2005 Elsevier Inc. All rights reserved.