A MULTIECHELON PROVISIONING AND RESUPPLY DECISION PROCEDURE.
DECISION STUDIES GROUP PALO ALTO CALIF
Pagination or Media Count:
A Polaris type multiechelon supply system consisting of a depot and k tenders is considered. Items can be stored at the tenders and at the depot. Replenishment of the tenders and the depot is made periodically. Emergency shipment between the depot and a tender is made when a unit is demanded from a tender with no remaining stock. No intertender shipments are permitted. With the appropriate cost structure on optimal multiechelon inventory procedure is a critical vector y, such that at the beginning of an order period the jth stock point orders to bring its stock up to y sub j where y sub j is the jth component of the vector y. An algorithm with which to compute y has been formulated and illustrated with a system composed of a depot and 3 tenders. Optimal inventory procedures for various combinations of unit cost, shortage cost, emergency shipment cost, discount factor and failure probability have been computed and tabulated.