Article ID: | iaor20052994 |
Country: | Netherlands |
Volume: | 161 |
Issue: | 1 |
Start Page Number: | 183 |
End Page Number: | 190 |
Publication Date: | Feb 2005 |
Journal: | European Journal of Operational Research |
Authors: | Vaughan Timothy S. |
Keywords: | inventory, programming: dynamic |
This paper addresses inventory policy for spare parts, when demand for the spare parts arises due to regularly scheduled preventive maintenance, as well as random failure of units in service. A stochastic dynamic programming model is used to characterize an ordering policy which addresses both sources of demand in a unified manner. The optimal policy has the form (