Allocation model of spare parts for three-echelon inventory system with lateral transshipment based on Markov

Focusing on the problem that there is lateral transshipment existing in the system of special equipment material,an allocation model for the three-echelon inventory system with lateral transshipment based on Markov is proposed.Combing with the condition that fault spare parts are partly restored,a subsystem inventory model for local warehouses is established according to a Markov queuing theory,and the steady state probability distribution is obtained.The allocation model for a three-echelon inventory system is established with aggregated local warehouses.Then the optimal model is established,and the objective is to minimize the total expected operating cost by choosing the maximum inventory level at the local warehouses.The iteration algorithm and Lingo software are used to solve and optimize the model.In the case,the optimal allocation cost is14.55% of non-lateral transshipment condition,which shows that the proposed model and algorithm are rational.Finally,sensitivity analysis is made to determine the influence degree of parameters.