Estimation of Optimal Depot Stock in Two-Echelon Inventory Systems for Recoverable Items.
Abstract
In 1968 Sherbrooke formulated the well known METRIC model for a two-echelon inventory system consisting of a set of bases and a supporting depot. The items stocked in the system are called recoverable items, that is, they are subject to repair when they fail. Sherbrooke and others have proposed a variety of algorithms for determining optimal base and depot stock levels. A substantial portion of the computational requirement associated with each of the algorithms is related to the search for the optimal depot stock level. The purpose of this paper is to describe an easily implementable method for estimating the optimal depot stock level. The computational experience reported in the paper indicates the proposed method provides an excellent estimate of the optimal depot stock level particularly for high demand items. Furthermore, the proposed method significantly reduces the computational requirements for any known algorithm for solving Sherbrooke's problem. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1976
- Accession Number
- ADA037397
Entities
People
- John A. Muckstadt
Organizations
- Cornell University College of Engineering