A. Shtub et M. Simon, DETERMINATION OF REORDER POINTS FOR SPARE PARTS IN A 2-ECHELON INVENTORY SYSTEM - THE CASE OF NONIDENTICAL MAINTENANCE FACILITIES, European journal of operational research, 73(3), 1994, pp. 458-464
Citations number
17
Categorie Soggetti
Management,"Operatione Research & Management Science
This paper deals with the determination of reorder points in a two-ech
elon spare parts inventory system. The system consists of a central wa
rehouse that supplies several maintenance facilities. Each maintenance
facility faces random demand. Inventory carrying cost is the same in
both echelons, but the consequences of stockout vary among the mainten
ance facilities. An inventory management policy is proposed that deter
mines the reorder point for each facility, so that predetermined requi
rements concerning relationships between the resulting service levels
are met. The inventory system described in this paper is typical to cl
ass A (in a Pareto or ABC analysis) of spare parts inventories, i.e.,
military. Limited quantities of spare parts are stocked in an inventor
y system serving several maintenance facilities. The same type of equi
pment is maintained by each facility. However, due to readiness requir
ements of the organizational units served by each facility, the requir
ed service levels of the centers are not all the same.