An analytical model of multi-echelon spare inventory based on multi-objective optimization

Optimization of spare part inventory is an important approach to improve operational readiness and reduce life cycle cost of equipment. Through analyzing the relationship of spare parts support and operational readiness for a two-echelon spare support system, an optimization model of multi-objective repairable spare parts is proposed. An algorithm is proposed for multi-objective optimization based on Pareto dominance, where system supply availability and the total acquisition cost are taken as the objects. Marginal efficiency analysis algorithm and multi-objective optimal algorithm is applied to achieve the optimization, and an optimal set distributed uniformly along the Pareto front is obtained. Finally, an example is given to show the performance of this model, and evaluate the effects of some important factors on support efficiency, including different spare stock, repair capacity of two echelons, and equipment reliability.