Optimal Inventory Modeling of Systems: Multi-Echelon Techniques

Front Cover
Springer Science & Business Media, Apr 30, 2004 - Business & Economics - 332 pages
1 Review

Most books on inventory theory use the item approach to determine stock levels, ignoring the impact of unit cost, echelon location, and hardware indenture. Optimal Inventory Modeling of Systems is the first book to take the system approach to inventory modeling. The result has been dramatic reductions in the resources to operate many systems - fleets of aircraft, ships, telecommunications networks, electric utilities, and the space station.

Although only four chapters and appendices are totally new in this edition, extensive revisions have been made in all chapters, adding numerous worked-out examples. Many new applications have been added including commercial airlines, experience gained during Desert Storm, and adoption of the Windows interface as a standard for personal computer models.

Book Reviews of the first edition

"This book is a remarkable review and summary of nearly 30 years work on applied inventory theory. The book is a model of clarity and coherence. Even those concerned with other problem domains may benefit from the distilled wisdom it offers." Interfaces – Professor Steve New, University of Manchester

"A large number of solved numerical examples help with the understanding of the models and mathematics used. Undoubtedly, a book of such integrity deserves a place on the shelf of any person, library or organization whose interests lie in the domain of inventory theory and its application to complex systems." Logistics Spectrum – Professor Mirce Knezevic, Exeter University

Book Review of the second edition

"In the second edition, the basics remain the same and should be considered essential knowledge for logisticians and system managers. Sherbrooke has spent his career solving real inventory problems. Practical examples help the reader understand critical concepts like marginal analysis, expected backorders, cost-availability curves, optimization, and analytical versus simulation based models. In Optimal Inventory Modeling of Systems, Sherbrooke tells us how we (public and private sector managers) can better understand and act on the critical trade-offs between cost and system availability. This reference text should be on your bookshelf." George T. Babbitt, General, USAF (Retired), Formerly Commander, Air Force Material Command; Director, Defense Logistics Agency.

 

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

INTRODUCTION
1
12 The System Approach
2
13 The Item Approach
3
14 Repairable vs Consumable Items
4
15 Physics of the Problem
6
16 MultiItem Optimization
7
17 MultiEchelon Optimization
8
18 MultiIndenture Optimization
9
616 Application of the Theory
158
617 Problems
159
SPECIAL TOPICS IN PERIODIC SUPPLY
163
72 Availability over Different Cycle Lengths
164
Orbit
165
74 Failures due to Wear Out
167
75 Numerical Example
170
76 Multiple Wear Out Failures at one Location during a Cycle
172

19 Field Test Experience
10
110 The Item Approach Revisited
13
111 The System Approach Revisited
14
112 Summary
17
113 Problems
18
SINGLESITE INVENTORY MODEL FOR REPAIRABLE ITEMS
19
22 Mean and Variance
20
23 Poisson Distribution and Notation
21
24 Palms Theorem
22
26 Stock Level
24
27 Item Performance Measures
25
28 System Performance Measures
29
210 Marginal Analysis
30
211 Convexity
33
212 Mathematical Solution of Marginal Analysis
34
213 Separability
37
215 Summary
41
216 Problems
42
METRIC A MULTIECHELON MODEL
45
32 METRIC Model Assumptions
46
33 METRIC Theory
48
34 Numerical Example
49
35 Convexification
53
36 Summary of the METRIC Optimization Procedure
54
37 Availability
55
38 Summary
56
DEMAND PROCESSES AND DEMAND PREDICTION
59
42 Poisson Process
61
43 Negative Binomial Distribution
62
44 MultiIndenture Problem
65
45 MultiIndenture Example
67
47 MultiIndenture Example Revisited
71
48 Demand Rates that Vary with Time
72
49 Bayesian Analysis
73
410 Objective Bayes
75
411 Bayesian Analysis in the Case of Initial Estimate Data
80
412 JamesStein Estimation
81
413 JamesStein Estimation Experiment
83
414 Comparison of Bayes andJamesStein
85
416 Demand Prediction Experiment Results
87
417 Random Failure versus Wearout Processes
89
418 GoodnessofFit Tests
92
419 Summary
95
420 Problems
96
VARIMETRIC A MULTIECHELON MULTIINDENTURE MODEL
101
MultiEchelon Theory
103
53 Definitions
106
54 Demand Rates
107
55 Mean and Variance for the Number of LRUs in Depot Repair
108
56 Mean and Variance for the Number of SRUs in Base Repair or Resupply
109
57 Mean and Variance for the Number of LRUs in Base Repair or Resupply
110
58 Availability
111
59 Optimization
112
511 Generalization of the Poisson Demand Assumption
113
512 Common Items
114
514 Numerical Example
120
515 Item Criticality Differences
122
516 Availability Degradation due to Maintenance
123
517 Availability Formula Underestimates for Aircraft
124
518 Summary
125
MULTIECHELON MULTIINDENTURE MODELS WITH PERIODIC SUPPLY AND REDUNDANCY
128
62 Chapter Overview
130
63 Maintenance Concept
131
64 Availability as a Function of Time during the Cycle
132
65 Probability Distribution of Backorders for an ORU
133
66 Probability Distribution for Number of Systems Down for an ORU
136
67 Probability Distribution for Number of Systems Down
139
68 Availability
140
69 Numerical Example for one ORU
141
610 Optimization
142
611 Multiple Resource Constraints
143
612 REDUNDANCY BLOCK DIAGRAMS
145
613 Numerical Examples
147
614 Other Redundancy Configurations with 50 ORUs Operating
153
615 Summary of the Theory
156
77 Common Items
177
78 Condemnations
178
79 Dynamic Calculations
179
711 Problems
180
MODELING OF CANNIBALIZATION
181
82 Single Site Model
183
83 MultiIndenture Model
186
84 Optimization of Availability
188
85 Comparison of Objective Functions for Cannibalization
190
86 Generalizations
193
87 DynaMETRIC and the Aircraft Sustainability Model
194
88 DRIVE Distribution and Repair in Variable Environments
195
810 Model Assumptions with DRIVE
197
811 Implementation Problems with DRIVE
199
812 Distribution Algorithm for DRIVE
200
813 Field Test Results for DRIVE
201
814 OVERDRIVE Separate Distribution and Repair Models
202
815 Current Status of DRIVE
206
816 Summary
207
817 Problems
208
APPLICATIONS
210
92 Airline Applications
212
93 Redistribution and Sale of Assets
213
Flyaway Kits
214
96 Items that are Sometimes RepairedinPlace
215
97 Contractor Repair
216
99 Sites that are Both Operating and Support
218
911 Systems Composed of Multiple SubSystems
219
912 Items with Limited Interchangeability and Substitutability
220
914 Unsatisfied Demand may not be a Backorder
221
IMPLEMENTATION ISSUES
223
102 Comparison of VARIMETRIC with Other Stockage Policies
225
104 Robust Estimation
226
105 Assessment of Alternative Support Policies
227
106 Model Implementation Air Force
228
107 Model Implementation Army
230
108 Model Implementation Navy
231
1010 Model Implementation Worldwide
232
1012 System Approach Revisited One More Time
234
1013 Problems
235
PALMS THEOREM
237
A2 Preliminary Mathematics
238
A3 Proof of Palms Theorem
239
A4 Extension of Palms Theorem to Finite Populations
241
A6 Problems
242
MULTIECHELON SYSTEMS WITH LATERAL SUPPLY
244
B2 Background
246
B3 Simulation Description
247
B4 Parameter Values
249
B5 DepotRepairableOnly Items
250
B6 BaseRepairable Items
257
B7 Number of Lateral Shipments
258
DEMAND PREDICTION STUDIES
261
C2 Appendix Overview
263
C3 Description of the Demand Prediction Experiment
264
C4 Results of the Demand Prediction Experiment for C5 Airframe
269
C5 Results of the Demand Prediction Experiment for A10 Airframe
274
C6 Results of the F16 Demand Prediction Experiment
275
C7 Demand Prediction for F16 using Flying Hour Data
276
C8 Correlations
281
Items
285
C10 Summary
286
PREDICTING WARTIME DEMAND FOR AIRCRAFT SPARES
290
D2 Desert Storm Experience
292
D4 Proposal for a Controlled Experiment
293
D5 Data Analysis F15 CD Aircraft
294
D6 Analysis of Other Data Sets
296
D7 Summary
298
VMETRIC MODEL IMPLEMENTATION
301
E2 VMetric Screens
302
DEMAND ANALYSIS SYSTEM
315
REFERENCES
321
Index
326
Copyright

Other editions - View all

Common terms and phrases

References to this book

All Book Search results »