Optimizing method of two-echelon equipment's spare parts inventory system with random horizontal replenishment

Abstract

This paper promotes the optimizing model and simulation algorithm for two-echelon spare parts inventory system which includes one center warehouse and one distributive inventory system involving N sub-warehouses. The distributive inventory system optimizing model, which considers the random horizontal replenishment of spare parts among sub-warehouses, can give a optimal set of inventory control parameters(Si, si) with service level constraint. The center warehouse's inventory control optimizing model based on least squares and multiple linear regression, which could optimize parameters(Q,s) depending on different service level of the distributive inventory system, is presented. The results of numerical simulation show that the model and algorithm are effective in reducing inventory cost of equipment spare parts while enhancing service level. The analysis numerical simulation, compared with other optimizing model of two-echelon spare parts inventory system, implies the optimizing model and simulation algorithm for two-echelon spare parts inventory system are advanced.