AN ORDERING POLICY FOR REPAIRABLE STOCK ITEMS

THE REPLENISHMENT POLICY UNDER CONSIDERATION STATES THAT WHEN THE SUM OF THE TOTAL INVENTORY PLUS THE ITEMS BEING REPAIRED MINUS THE BACK ORDERS REACHES A REORDER POINT, AN ORDER IS PLACED FOR A NUMBER OF UNITS TO BE RECEIVED AFTER A GIVEN LEAD TIME. THE TOTAL COST OF SUCH POLICY IS EXPRESSED AS THE SUM OF THE EXPECTED SHORTAGE COST, INVENTORY HOLDING COST AND ORDERING COST PER UNIT OF TIME. COST COMPONENTS ARE ASSUMED TO BE PROPORTIONATE TO THE EXPECTED NUMBER OF UNITS SHORT, INVENTORY AND ORDERS PER UNIT TIME RESPECTIVELY. AN EQUATION FOR COST IS DERIVED. /ORMS/

• Corporate Authors:

  Operations Research Society of America

  /31st Natl Meeting
  ,   United States 
• Authors:
  • Allen, S G
  • D'ESOPO, D A
• Publication Date: 1967-5

Subject/Index Terms

• TRT Terms: Cost allocation; Equations; Inventory control; Repairing; Stocks
• Uncontrolled Terms: Repairs
• Old TRIS Terms: Replenishment
• Subject Areas: Highways; Maintenance and Preservation;

Filing Info

• Accession Number: 00218286
• Record Type: Publication
• Source Agency: Operations Research Management Science
• Files: TRIS
• Created Date: Aug 5 1994 12:00AM