BAYESIAN SUPPLY POLICIES FOR SERVICE-LIFE PARTS
Abstract
The characteristic feature of service-life parts, from the standpoint of inventory theory in particular and of logistics management in general, is that demands (i.e., parts failures) are not generated by a Poisson process, because failures are not independent of age. The applicable statistical models are those of renewal theory and replacement theory. Where uncertainty exists concerning the parameters of the underlying failure distribution, the techniques of Bayesian decision theory may be advantageously applied. This memorandum examines some of the theoretical and practical implications of applying Bayesian tech niques to the logistics of service-life parts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 27, 1963
- Accession Number
- AD0405106
Entities
People
- T.a. Goldman
Organizations
- Center for Naval Analyses