Accession Number:

AD0768129

Title:

Reducing Life Cycle Costs by Optimizing the Production-Inventory Model for Spare Parts,

Descriptive Note:

Corporate Author:

ARMY MATERIEL COMMAND TEXARKANA TEX INTERN TRAINING CENTER

Personal Author(s):

Report Date:

1973-05-01

Pagination or Media Count:

91.0

Abstract:

The objective of the paper is to reduce the life cycle cost of a systemequipment by reducing the production and inventory costs of spare parts. Two methods are developed to minimize the production and inventory costs. The first method allows for production of spare parts every t time units during the life of the systemequipment. Demand is considered probabilistic and based on the failure rate of a spare part. The inventory model seeks to minimize total cost by optimizing the length of the scheduling period and the order level. In the second method, production of spare parts occurs only once at the time the systeme uipment is field. Demand is considered probabilistic with the lifetime of the equipment known. For this case the number of spares to place in inventory must be determined so that the risk associated with not having a spare is minimized. Author

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE