A network approach to modeling the multi-echelon spare-part inventory system with backorders and interval-valued demand

Eugene Levner, Yael Perlman, T.C.E. Cheng and Ilya Levner

International Journal of Production Economics, 2011, vol. 132, issue 1, 43-51

Abstract: A multi-echelon inventory system implies the existence of a hierarchy of stocking locations, and the dependence and interaction between them. We consider a multi-echelon, spare-part inventory management problem with outsourcing and backordering. The problem is characterized by deterministic repair time/cost, and supply and demand that lie within prescribed intervals and that vary over time. The objective is to minimize the total inventory and transportation costs. We develop a network model for problem analysis and present a network flow algorithm for solving the problem. We prove that the Wagner-Whitin property, known for the lot-sizing problem, can be extended to the spare-part inventory management problem under study.

Keywords: Spare-part; inventory; management; Multi-suppliers; Backorders; Network; model; Network; flow; algorithm; Wagner-Whitin; property (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (7)

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