Distribution of Inventory Level on a Repairable Parts System under Performance-Based Contract
- Corresponding Author:
- Mingwu L
School of Management
Chongqing Jiaotong University
Chongqing 400074, P R China
Tel: +86 135 275 00103
E-mail: [email protected]
Received date: March 24, 2016; Accepted date: April 29, 2016; Published date: May 26, 2016
Citation: Jiliang L, Mingwu L, Mengying F, Xu Z (2016) Distribution of Inventory Level on a Repairable Parts System under Performance-Based Contract. Ind Eng Manage 5:190. doi: 10.4172/2169-0316.1000190
Copyright: © 2016 Jiliang L, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
Mirzahosseinian develop a closed-loop inventory system consisting of a repair facility and a single warehouse, for a repairable parts system operating under a Performance-Based Logistics contract. They model the closed-loop inventory system as a multi-server queueing model (M/M/m queue) where component failures follow Poisson distribution and the repair times at the service facility are exponential. The model sets up the balance equations of the steady-state probability distribution of inventory level. This paper extends their model. A recursive method is utilized and an analytic steady-state probability distribution of inventory level is derived. It also demonstrates by numerical experiments that the analytic steady-state probability distribution is correct. We obtain the analytic system performances and the metrics, which contribute to system cost optimization.