Random effects model to forecast optimal annual base inventory level of minor part in the module of fighter aircraft

Forecasting optimal annual base inventory level of minor part in the module of fighter aircraft plays an increasingly important role in modern military logistics management. Most of the existing inventory models do not take into account the time varying characteristics of modules composed of minor parts even though the demand rate of minor parts is sensitive to the conditions of module. In this paper, we propose a random effects model in order to predict the optimal annual base inventory level of the minor parts, which can minimize the inventory cost. Our study is expected to contribute to ROKAF (Republic of Korea Air Force) in terms of establishing the optimal inventory policy of minor parts in the module of fighter aircrafts. Keyword : optimal base inventory level ; fighter aircraft; random effects Poisson model