OPTIMUM ALLOCATION OF RESOURCES IN THE PURCHASE OF SPARE PARTS AND/OR ADDITIONAL SERVICE CHANNELS
Abstract
The manager of a warehouse and repair facility must decide how many spares of each of many different part types to store in inventory so as to insure, in some sense, the efficiency of the facility's operations. Having a budget constraint, and using information on the failure rates of the parts, the relative importance of each part of the other parts, and the amount of time necessary to repair a failed part, the manager must decide how to optimally allocate his resources in purchasing these spare parts. Furthermore, he might also consider allocating some of his funds in an effort to increase the capabilities of his repair facility. The paper first formulates various mathematical models and then, in each case, shows how one can obtain a sequence of undominated solutions.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1969
- Accession Number
- AD0692395
Entities
People
- Leonard J. Jacobson
Organizations
- University of California, Berkeley