By Craig C. Sherbrooke
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Extra info for Optimal inventory modeling of systems : multi-echelon techniques
Example text
2 as a sum of squares, it is easy to see that the variance is always non-negative for any probability distribution. 1 is found to equal mT. We will find it convenient in this book to define m as the average annual demand and T as the average time period measured in years. Of course, the Poisson distribution is unaffected by the time unit used for m and T, because the mean depends only on their product. 2 is mT, also. 1 that when the time between demands is given by an exponential distribution (also called a Poisson process), the number of demands in a time period of any fixed length is given by the Poisson distribution.
Perhaps the failure is in the hydraulics system rather than in the electrical system. The problem is further complicated by the fact that items are not necessarily fixed on a first-come, first-served basis. An item that is grounding an aircraft is going to be put at the head of the repair line. In effect, we need to model the repair shop management process as well. Thus, if we want to model the shop in detail, we have a very complex problem. Even if we can’t model the repair queueing exactly, can we determine whether our assumptions of independence of repair times lead to optimistic or pessimistic results?
In addition to being much more expensive, there were 167 items, 12% of the 1414 items with demand in the first six months, on which the Air Force policy would have stocked an inadequate number of spares in the judgment of experienced personnel. Thus, supply managers had obtained permission for special augmented levels on these items in the pretest period. The stock levels from a model should not be treated like the Ten Commandments. No model embodies all of the day-to-day knowledge of experienced personnel.