Analysis of Inventory/Resupply Sub-System Models in Optimal Materiel Distribution System Design.
DAYTON UNIV OHIO SCHOOL OF ENGINEERING
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The purpose of the Air Force freight distribution system is to meet spare parts demand requirements at minimum cost. Budgetary constraints suggest that total expected backorder level for items at user installations be minimized, subject to a given dollar expenditure level for inventory investment. LOGAIR a dedicated Air Force air transport service is a major transportation sub-system to support spare parts delivery requirements of users of high priority items. A two-echelon inventory system for spare parts delivery exists with centralized, specialized inventories at Air Logistics Centers and decentralized, broad profile inventories located at user installations. LOGAIR provides transport with low order and ship time to reduce resupply time in the maintenance of inventory safety levels at user bases. A costbenefit model is formulated which recognizes the impact of the Air Force resupply system upon total spare parts distribution in terms of total inventory investment level, total system cost, and backorder level. Given a total expenditure level available for allocation between inventory investment and transportation, the problem is to determine the optimal fractional allocation to be made to transportation the remaining fraction to be allocated to inventory investment such that total expected backorder level is minimized.
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