Models and Algorithms for Repair Parts Investment and Management
RAND CORP SANTA MONICA CA
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The Armed Services use end-items, such as aircraft, that rely on expensive repairable components. Because of this reliance, the Services operate networks of facilities for supply and maintenance of end-items and repairable components. The Services must invest in the elements of the supply and maintenance system, allocating funds among spare repairable components, repair parts, repair capacity, second-destination transportation, and so on. At any given time, the managers of these facilities must also make operating decisions- which components to induct, which repair parts to order-that affect the performance of the maintenance and supply system and the cost of achieving that performance. This report proposes a way to think about these investments and operating decisions, focusing on spare repairable components and repair parts. We distinguish between a long-run or investment problem and a short-run or operating problem. Our approach to both problems begins by defining the value of each part or supply action, so that the costs of either can be related to their effects, thereby permitting managers to select courses of action that maximize value given the cost of the actions. This report focuses on specific long-run and short-run problems and on the context of Service maintenance depots, but we suggest how our approach and methods can be adapted for other uses.
- Logistics, Military Facilities and Supplies