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Determining the Proper Level of Spare Parts using the CSP and (r,Q) Policies in a Two-Echelon Distribution System  

Jeong, Suk-Tae (Department of Industrial & Information Engineering, Yonsei University)
Lee, Jung-Hack (Department of Industrial & Information Engineering, Yonsei University)
Kim, Kyung-Sup (Department of Industrial & Information Engineering, Yonsei University)
Publication Information
Journal of the Korea Safety Management & Science / v.9, no.4, 2007 , pp. 121-127 More about this Journal
Abstract
CSP(Concurrent Spare Parts) is supplied with the procurement of new equipment or weapon system and is used to sustain the equipment without resupply during the initial coverage period. This study is concerned with a problem of determining the near optimal inventory level of the spare parts, especially Concurrent Spare Parts. For this, we utilize the mixed periodic and continuous review polices considering the CSP and (r,Q) Policies concurrently in a two-echelon distribution system. We propose the mathematical model to minimize the total cost which is composed with ordering cost, purchasing cost, holding cost, and stickout cost. If the mixed policy is compared to other policies(CSP, (r,Q)), the proposed methodology performs well and is best policy in the equipment maintenance expenses.
Keywords
Concurrent Spare Parts; (r,Q) Inventory Policy; Resupply;
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