Stockage objectives for slow moving repair parts.

Abstract

Relatively little work has been performed in the past on inventory control models for low demand repair parts. A simple inventory control system for determining optimal stockage objectives for such items is discussed and evaluated over a wide range of parameters. Stockage objectives are obtained by minimizing the total variable cost which is considered to be the sum of the carrying and outage costs. A one and two depot supply system is studied for items whose stochastic demand characteristics have stationary Poisson probability distributions. Computer programs are presented for evaluating the models along with the resulting graphs and tables.