Inventory control of spares in a transport corporation -- A case study

Prem Vrat and A Subash Babu

Omega, 1979, vol. 7, issue 2, 153-159

Abstract: This paper reports on a study carried out in a transport organisation to find the optimal inventory of recoverable spares in a two-level inventory system consisting of a central depot and a set of 20 depots all over the territory of the organisation, with repair facilities. The problems of the present system are diagnosed and it is observed that the upper echelon's inability to meet the lower echelon's demand has resulted in an ever-increasing shortage. A mathematical model is developed to suit the system structure and a set of optimal inventory policies for recoverable spares at both the echelons is obtained for the case studied.

Date: 1979
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