Stock level determination and sensitivity analysis in repair/rework operations

Abstract

In this article, we present the results of a study examining the behavior of various inventory stocking methodologies in repair/rework operations. A major area of focus is on the sensitivity of key model parameters to stochastic replenishment lead times, product demand, and overhaul factors. A case study in a US Army depot provides validation for the effort. Simulation results indicate the current depot stocking methodologies are adequate in ideal conditions, but are less effective in more challenging and realistic scenarios. Results also indicate that some commonly used inventory models are quite robust to stochastic operating parameters in the unique/rework environment.

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