A Network Model for Multi-echelon Spare-part Inventory Systems with Backorders and Quantity Discount of External Supplier

Abstract

One of the most important aspects of multi echelon inventory management systems is related to spare part; actually, in the real world, it is more economical to repair equipment than replace them. Also, it is possible to benefit from discounts when more spare parts purchased from an external supplier. So, this paper considers a multi-echelon spare-part inventory system with backorders and quantity discount of external supplier and applies a network approach for modeling and solving these problems. Numerical example shows the efficiency of this algorithm.

Keywords

References

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History

  • Receive Date: 09 December 2012
  • Revise Date: 20 January 2013
  • Accept Date: 23 January 2013
  • Publish Date: 20 June 2013

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