Optimising net margins and stock position in spare parts inventory echelons

G Wright

Omega, 1992, vol. 20, issue 4, 503-511

Abstract: This paper examines the disposition problems of spare parts in inventory echelons. In particular a method is developed which can jointly optimise both the stock level and stock location problem. It is based on a so called optimum rate of stock turnover which is shown to minimise the real net margin earned by an inventory item at a given location. The paper also gives some consideration to the traditional methods for measuring aggregate stock performance when the inventory factors such as usage values are highly skewed and invariably follow a lognormal distribution in the spare parts case.

Keywords: inventory; control; spare; parts (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (1)

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