The Impact of Repair—Echelon Effectiveness and Location on Spare Stock

This paper discusses integrated logistics in a two‐level repair‐inventory system of a transport corporation where there is one central depot and twenty subordinate depots which cater to the needs of the population in a metropolitan city in India. An expensive, recoverable spare (engine) is considered with (S — 1, S) inventory policy. It is reported that the present location of the central facility is not optimal. The advantages possible by optimally locating this central facility are highlighted with results. The impact of increasing the maintenance effectiveness on the optimum spare stock level and the total system cost are discussed.