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Two-Stage Versus Single-Stage Inventory Models with or without Repair Ability

In: Operations Research Proceedings 2012

Author

Listed:
  • Ismail Serdar Bakal

    (Middle East Technical University)

  • Serkan Ozpamukcu

    (Middle East Technical University)

  • Pelin Bayindir

    (Middle East Technical University)

Abstract

In this study, we consider an inventory system for a single item, which is being used in the military operations. In the current system, there is a two-echelon inventory setting which consists of a single stock point, the central depot, in the upper echelon and several stock points, the bases, in the lower echelon. A continuous review base-stock policy is used by all facilities. The military headquarters responsible for inventory management identified improvement opportunities such as acquiring repair ability and changing the structure of the supply chain from a two-echelon model to a single echelon model. Considering these opportunities, we investigate four different alternative inventory systems, single-echelon and two echelon models with or without repair ability. Our objective is to determine if and under what conditions each alternative results in lower costs.

Suggested Citation

  • Ismail Serdar Bakal & Serkan Ozpamukcu & Pelin Bayindir, 2014. "Two-Stage Versus Single-Stage Inventory Models with or without Repair Ability," Operations Research Proceedings, in: Stefan Helber & Michael Breitner & Daniel Rösch & Cornelia Schön & Johann-Matthias Graf von der Schu (ed.), Operations Research Proceedings 2012, edition 127, pages 555-560, Springer.
    • Handle: RePEc:spr:oprchp:978-3-319-00795-3_83
    DOI: 10.1007/978-3-319-00795-3_83
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    Cited by:

    1. Amin Yazdekhasti & Yahia Zare Mehrjardi, 2020. "Two-echelon three-indenture warranty distribution network: a hybrid branch and bound, Monte-Carlo approach," Operational Research, Springer, vol. 20(2), pages 1113-1158, June.

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