Periodic Resource Reallocation in Two-Echelon Repairable Item Inventory Systems

• Main Authors: LAU, Hoong Chuin, Pan, Jie, SONG, Huawei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Two-Echelon Inventory; Periodic Resupply; Reallocation; Repairable Item; Military Logistics; Artificial Intelligence and Robotics; Business; Operations Research, Systems Engineering and Industrial Engineering
• Online Access: https://ink.library.smu.edu.sg/sis_research/213; https://ink.library.smu.edu.sg/context/sis_research/article/1212/viewcontent/Reallocation_IEEE_TASE.pdf
• Institution: Singapore Management University

Given an existing stock allocation in an inventory system, it is often necessary to perform reallocation over multiple time points to address inventory imbalance and maximize availability. In this paper, we focus on the situation where there are two opportunities to perform reallocation within a replenishment cycle. We derive a mathematical model to determine when and how to perform reallocation. Furthermore, we consider the extension of this model to the situation allowing an arbitrary number of reallocations. Experimental results show that the two-reallocation approach achieves better performance compared with the single-reallocation approach found in the literature. We also illustrate how to apply the proposed model to design cost-optimal periodic resupply policies.