Base stock level determination for high cost low demand critical repairable spares

Abstract The paper presents an (S − 1, S) policy with three modes of replenishment: normal repair orders, emergency repair orders, and the expediting of outstanding orders. A procedure based on simulation is described in order to determine the parameters of the replenishment policy: the base stock level S, the expediting level S , and the expediting threshold T0. The application of this procedure to a category of repairable spares at a paper mill demonstrates the computational feasibility of the solution procedure.

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