Emergency Supply Alternatives for a Storage Facility of a Repairable Multi-Component System

Yonit Barron () and Chananel Benshimol
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Yonit Barron: Department of Industrial Engineering and Management, Ariel University, Ariel 40700, Israel
Chananel Benshimol: Department of Industrial Engineering and Management, Ariel University, Ariel 40700, Israel

Mathematics, 2024, vol. 12, issue 17, 1-37

Abstract: This paper studies a continuous-review stochastic replenishment model for a multi-component system with regular and emergency orders. The system consists of N parallel and independent components, each of which has a finite life span. In addition, there is a warehouse with a limited stock of new components. Each broken component is replaced by a new component from the stock. When no component is available, an emergency supply is ordered. The stock is managed according to an ( ( s , S ) , ( 0 , Q e ) ) policy, which is a combination of an ( s , S ) policy for the regular order and a ( 0 , Q e ) policy for the emergency order. The regular order is delivered after an exponentially distributed lead time, whereas the emergency order is delivered immediately. We study three sub-policies for emergency orders, which differ from each other in size and in relation to the regular order. Applying the results from queueing theory and phase-type properties, we derive the optimal thresholds for each sub-policy and then compare the economic benefit of each one.

Keywords: inventory; ( s , S ) policy; emergency supply; repairable system (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
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