Operating hours based inventory management.

Abstract

Inventory management models based on operating hours are examined and discussed. Traditional demand based models incorporating risk and shortage costs are developed. The two major components of an operating hours model, operating hours and procurement lead-time are reviewed and discussed. Data for both operating hours and procurement lead-time for the LM-2500 Gas Turbine Engine, and operating hours for the U. S. Air Force are reviewed and tested to determine accuracy. Some time series models are tested to determine if operating hours forecasting can be improved. The role of the item manager in an operating hours based model is discussed.