Complex technical systems are often hierarchically composed of exchangeable modules, which themselves may be composed of exchangeable submodules. The hierarchy of modules of such systems can be represented by trees. Defective systems are repaired in a supply depot system by exchanging the defective modules from a stock of spare parts. The exchanged defective modules are repaired for resupply. In this paper, a dynamic programming algorithm for optimizing the stocks of spare parts, under a budget constraint, is presented. The optimization criterion is the minimization of the backlog of entire systems at the supply depot system. An implementation of the algorithm is described and some illustrative examples are given.
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