9501740 The focus of this research is on the development of easily implementable (Q,r) inventory policies for multi-echelon spare parts distribution system, where Q and r stand for order quantity and re-order point respectively. By easily implementable policies, the investigator implies 1) policies that do not depend on difficult to estimate or unestimatable parameters, 2) policies that lead to closed form expressions for stocking parameters that can be computed using a spreadsheet, and 3) small changes in the list of part numbers being managed do not require re-running the entire algorithm to adjust the control parameters. In other words, the system only needs to be updated periodically. The investigator's justification for the research are 1) lack of actual use of existing models, 2) the computational requirements involved with existing approaches, and 3) the difficulty involved in estimating system control parameters with traditional approaches. The objective of the research is to extend the existing models to the point where a useful design tool can be developed. The research also addresses strategies to integrate students in the study and deploy the results to support student teaching and education. The outcome of this research has the potential to advance the state-of-the-art in inventory control systems. The research can lead to improvement in the design process, both in terms of reducing investment on inventory and increasing service level. The use of closed form expressions in a dynamic inventory system can pave the way for a higher use rate of the models in controlling inventory systems.
