Optimization of multi-echelon repairable item inventory systems with simultaneous location of repair facilities

We study a support system for a fleet of technical systems. Our tasks are to determine the amount of spares and test equipment necessary for the support system to operate satisfactorily and to determine where repair should take place. Our decisions are made on an economical basis, or more precisely, we seek the optimal support system configuration that meets a specified life-cycle cost constraint. A mathematical framework is presented which allows for these three tasks to be solved simultaneously.