An Optimal Algorithm for Repairable-item Inventory System with Depot Spares

Abstract

The problem of determining the spare inventory level for a multiechelon repairable-item inventory system is considered. The model extends the previous results to the system, which has an inventory at the central depot, as well as at the bases. An algorithm has been developed to find the optimal spare inventory levels, which minimize the total expected cost and simultaneously satisfy a specified minimum service rate. The algorithm is illustrated using examples of various sizes.