Abstract
A multi-echelon inventory system implies the existence of a hierarchy of stocking locations, and the dependence and interaction between them. We consider a multi-echelon, spare-part inventory management problem with outsourcing and backordering. The problem is characterized by deterministic repair time/cost, and supply and demand that lie within prescribed intervals and that vary over time. The objective is to minimize the total inventory and transportation costs. We develop a network model for problem analysis and present a network flow algorithm for solving the problem. We prove that the WagnerWhitin property, known for the lot-sizing problem, can be extended to the spare-part inventory management problem under study.
Original language | English |
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Pages (from-to) | 43-51 |
Number of pages | 9 |
Journal | International Journal of Production Economics |
Volume | 132 |
Issue number | 1 |
DOIs | |
State | Published - Jul 2011 |
Keywords
- Backorders
- Multi-suppliers
- Network flow algorithm
- Network model
- Spare-part inventory management
- WagnerWhitin property
All Science Journal Classification (ASJC) codes
- Economics and Econometrics
- General Business,Management and Accounting
- Industrial and Manufacturing Engineering
- Management Science and Operations Research