Batch Ordering Policy of Multi-location Spare Parts Inventory System with Emergency Lateral Transshipments

A batch ordering model for multi-location spare parts inventory system with emergency lateral transshipments is provided, and algorithms for calculating the probabilities of demand fulfillment by inventory point self, by transshipment, or backorder are also given. Based on these, a procedure is given to find the best ordering point for a constrained model that minimizes holding plus transshipment cost subject to a certain service level, assuming the ordering quantity is predetermined. The results were tested through simulation.