This paper deals with a continuous review (s, S) spare-part inventory model for multiple operating units, in which stock depletion arises not from external market demand but from internal demand resulting from failures of the units in use.
In this pa...
This paper deals with a continuous review (s, S) spare-part inventory model for multiple operating units, in which stock depletion arises not from external market demand but from internal demand resulting from failures of the units in use.
In this paper, we consider the following situation. N units having identical exponential lifetimes are operating simultaneously and the replenishment lead time is general. In the (s, S) spare-part inventory model, a quantity Q =S-s is ordered each time the inventory level reaches the reorder point s.
Average annual cost of operating the inventory system is derived under the assumption that there is never more than a single order outstanding.