An inventory model for allocating repairable spares based on three-echelon supply relationship

This paper develops a METRIC-like model to optimize inventory allocation of repairable spares in a three-echelon supply system. Supply availability is selected as the optimizing object of the model, and the total ordering cost of repairable spares is taken as the constraint condition. The optimal allocation of repairable spares is reached by the marginal analysis algorithm. Then the established model and the solution algorithm are applied to an illustrative example, in which the sensitivity analysis of parameters is carried out along with the optimal allocation of repairable spares. The simulation results illustrate that this model has the potential to significantly improve decision-making related to inventory allocation efforts for weapon system.