A Two-Echelon Inventory System with Priority Shipments
Management Science · 1992 · Volume 38 · Issue 8
Abstract
A two-echelon system for spare parts is analyzed. The system allows the use of priority inventory pooling to expedite service when a stock-out occurs. First, a tractable aggregate model is derived. This model is then disaggregated to approximate the performance of the exact system. Results of computer tests are also presented.
Keywords
inventory, multi-echelon systems, spare parts
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