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A Network Decomposition Approach for Approximating the Steady-State Behavior of Markovian Multi-Echelon Reparable Item Inventory Systems

Author

Listed:
  • Donald Gross

    (Department of Operations Research, The George Washington University, Washington, DC 20052)

  • Leonidas C. Kioussis

    (Department of Operations Research, The George Washington University, Washington, DC 20052)

  • Douglas R. Miller

    (Department of Operations Research, The George Washington University, Washington, DC 20052)

Abstract

We develop a method for obtaining approximate steady-state probabilities for large multi-echelon reparable item inventory systems modeled as non-Jacksonian Markovian networks with finite state space. The approximation involves decomposing the network model into smaller overlapping local subnetwork models, solving them in "isolation" and iterating back and forth among the subnetwork models until convergence is obtained. Numerical results show that the method is quite accurate and efficient for this application.

Suggested Citation

  • Donald Gross & Leonidas C. Kioussis & Douglas R. Miller, 1987. "A Network Decomposition Approach for Approximating the Steady-State Behavior of Markovian Multi-Echelon Reparable Item Inventory Systems," Management Science, INFORMS, vol. 33(11), pages 1453-1468, November.
    • Handle: RePEc:inm:ormnsc:v:33:y:1987:i:11:p:1453-1468
    DOI: 10.1287/mnsc.33.11.1453
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    Cited by:

    1. Ghaddar, Bissan & Sakr, Nizar & Asiedu, Yaw, 2016. "Spare parts stocking analysis using genetic programming," European Journal of Operational Research, Elsevier, vol. 252(1), pages 136-144.
    2. Rustenburg, W. D. & van Houtum, G. J. & Zijm, W. H. M., 2001. "Spare parts management at complex technology-based organizations: An agenda for research," International Journal of Production Economics, Elsevier, vol. 71(1-3), pages 177-193, May.
    3. D Nowicki & U D Kumar & H J Steudel & D Verma, 2008. "Spares provisioning under performance-based logistics contract: profit-centric approach," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(3), pages 342-352, March.

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