Spare parts inventory pooling : how to share the benefits ?

  title={Spare parts inventory pooling : how to share the benefits ?},
  author={Frank Karsten and Rob J. I. Basten},
We consider a stock point for expensive, low-usage items that is operated by multiple decision makers. Each faces a Poisson demand process, and the joint stock point is controlled by a continuous-review base stock policy with full backordering. We consider penalty costs for backorders and holding costs for stock on hand. For this model, we derive structural properties of the resulting cost function. We use these to prove not only that it is cost effective to share one stock point with all… CONTINUE READING


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