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Inventory allocation among an assembly and its repairable subassemblies

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  • Edward A. Silver

Abstract

In this paper we consider a major assembly composed of two or more subassemblies. The failure of any subassembly causes the major assembly to not function. Every failed subassembly is repaired or replaced. A total investment in stocks of spare components is to be distributed among the various subassemblies and the major assembly so as to provide the best possible customer service. This is a complicated problem: relevant factors are the failure rates, unit costs, and repair times of the various components. For the case of Poisson failures, a heuristic solution is developed which is a compromise between theoretical optimality and practical usefulness.

Suggested Citation

  • Edward A. Silver, 1972. "Inventory allocation among an assembly and its repairable subassemblies," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 19(2), pages 261-280, June.
    • Handle: RePEc:wly:navlog:v:19:y:1972:i:2:p:261-280
    DOI: 10.1002/nav.3800190205
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