Multi-Echelon Repairable Item Inventory System with Limited Repair Capacity under Nonstationary Demands

Abstract

Classical multi-echelon repairable item inventory models are based either on steady-state analysis or infinite repair capacity, which may not work well in situations when the demand is nonstationary, or repair capacity is limited. In this paper, we propose an analytical model for evaluating system performance that works well under limited repair capacity and nonstationary demands. Following the METRIC methodology, we then develop an optimisation algorithm to solve the corrective maintenance problem in military logistics. Experimental results show that our approach yields good solutions efficiently. This work has also resulted in a software that has been field-tested by a military organisation.