Optimal Positioning of Inventory Stock in a Multi-Echelon System,
Abstract
The paper considers optimal stockage and resupply policies for a multi-echelon inventory system in which the time and cost of resupply can be altered by various logistical expenditures. At stations on the lowest echelon, demands arise due to part failure. With some probability, the part can be repaired at this echelon. Spare parts may be obtained from inventory, through repair, or by ordering, after a delivery lag. Multiple lower echelons are supported by each intermediate stock point, but no monitoring of lower echelon usage occurs. A dynamic programming model is used to derive optimal stockage and recorder policies for each echelon as a function of the resupply time. An analysis of the effects of expenditures on the resupply system itself, employing branch and bound techniques, is then used to determine an overall optimum. Preliminary results from an application of this procedure to the Naval Aviation support system are presented. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1971
- Accession Number
- AD0723852
Entities
People
- Bernard L. Perlman
- George F. Brown Jr.
- Lester P. Silverman
Organizations
- Center for Naval Analyses