War Reserve Spares Kits Supplemented by Normal Operating Assets
Description of a mathematical model developed to assist the Air National Guard in designing war reserve spares (WRS) kits. The model differs from a previous one by taking into account the role that normal base operating assets might play in supplementing war reserve spares requirements. It solves the following kind of optimization problem: Find the least-cost WRS kit that will keep the probability of a stockout after cannibalizations less than or equal to a specified target objective. The technique of marginal analysis is used to maximize the operational rate, which is the probability of meeting all demands for spares. A sensitivity analysis, based on data from an Air National Guard unit, reveals that if peacetime levels were explicitly taken into account when designing a WRS kit, a cost saving of nearly 40 percent would be effected without degrading base supply performance in wartime. The model is programmed in FORTRAN IV for the IBM 7044.