A Dynamic, Single-Item, Multi-Echelon Inventory Model

A mathematical model constructed as a computational aid for planners attempting to establish least-cost order and supply policies within a complex and dynamic structure. The model is a dynamic, single-item, multi-echelon inventory model, which integrates stockage policies for individual activities to minimize inventory costs for the logistics system as a whole. A typical Air Force supply system is used as its frame of reference, in which many bases stock a particular item, a depot replenishes base stocks, and a factory and a repair facility resupply the depot with new and repaired items. The main decisions to be made at any given time are how much to ship to each base, how much to repair, and how much to procure from the factory. The dynamic element in the problem is accentuated by bases phasing into and out of operation at different times and experiencing changing failure patterns while in operation.