A preliminary evaluation of a readiness-based repairable item inventory model for the U.S. Navy
McMasters, Alan W.
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A new wholesale level replenishment model is proposed for managing the Navy's inventories of repairable items. It is a readiness-based model which seeks to determine the depths of items of a weapon system which minimize the system's Mean Supply Response Time subject to budget constraint. The model incorporates both a batch procurement and batch repair of the items. Required inputs to this model are the specified values of each. The model assumes that demand is a Poisson process. The model formulation is presented. The solution procedure, which uses marginal analysis, is described. The budget generation process is also described. The model's performance is illustrated with an example of ten items. The results show that the proposed model provides much better Mean Supply Response Time values than the current Navy model. As an added benefit, it also gives better Supply Material Availability values that the current model. Results are also presented of a study conducted to determine potentially desirable values for the procurement order quantity and repair induction quantity. Finally, the use of a Mean Supply Response Time goal to determine the depths of the items is illustrated.
NPS Report NumberNPS-SM-00-006
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