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Operating characteristics of a two‐echelon inventory system for repairable and consumable items under batch ordering and shipment policy
Author(s) -
Lee Hau L.,
Moinzadeh Kamran
Publication year - 1987
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(198706)34:3<365::aid-nav3220340305>3.0.co;2-p
Subject(s) - computer science , operations management , operations research , reliability engineering , business , mathematics , economics , engineering
In this article we have generalized previous models on multiechelon recoverable inventory systems to cover the cases of batch ordering and shipment policy, and when items can either be repaired or condemned. The batch ordering and shipment policy is appropriate when the setup cost for shipment and order and/or the demand rates of the items are relatively high. The operating characteristics of such a system have been studied. Specifically, the probability distribution of backorder levels at the bases are analyzed for different repair‐time distributions. An approximation scheme is proposed for this distribution, and is evaluated using extensive simulation results. The results indicate that the scheme is very effective in providing near‐optimal stocking levels in such a system.