An optimal algorithm for repairable-item inventory system with depot spares

We consider the problem of determining the spare inventory level for a multiechelon repairable-item inventory system. Our model extends the previous results to the system which has an inventory at the central depot as well as at bases. We develop an optimal algorithm to find spare inventory levels, which minimize the total expected cost and simultaneously satisfy a specified minimum service rate. The algorithm is tested using problems of various sizes to verify the efficiency and accuracy.