| Abstract: | In this article we have generalized previous models on multiechelon recoverable inventory systems to cover the cases of batch ordering and shipment policy, and when items can either be repaired or condemned. The batch ordering and shipment policy is appropriate when the setup cost for shipment and order and/or the demand rates of the items are relatively high. The operating characteristics of such a system have been studied. Specifically, the probability distribution of backorder levels at the bases are analyzed for different repair-time distributions. An approximation scheme is proposed for this distribution, and is evaluated using extensive simulation results. The results indicate that the scheme is very effective in providing near-optimal stocking levels in such a system. |
