Reducing Life Cycle Costs by Optimizing the Production-Inventory Model for Spare Parts,
Abstract
The objective of the paper is to reduce the life cycle cost of a system/equipment by reducing the production and inventory costs of spare parts. Two methods are developed to minimize the production and inventory costs. The first method allows for production of spare parts every t time units during the life of the system/equipment. Demand is considered probabilistic and based on the failure rate of a spare part. The inventory model seeks to minimize total cost by optimizing the length of the scheduling period and the order level. In the second method, production of spare parts occurs only once at the time the system/e uipment is field. Demand is considered probabilistic with the lifetime of the equipment known. For this case the number of spares to place in inventory must be determined so that the risk associated with not having a spare is minimized. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1973
- Accession Number
- AD0768129
Entities
People
- John E. Peer
Organizations
- United States Army Materiel Command