Two-echelon logistics model for recoverable items with lateral supply in the Army

This paper develops a Two-echelon logistics model for recoverable items with lateral supply in a single period in the Army. It derives formulas for distribution and inventory costs, and determines the optimal stock level at a depot and at a base to minimize the backorders. During the period, a Poisson demand and distinct units of operating bases which stocks can be shared are assumed. It allows the lateral supply between operating bases. A two-phase method is used to get solutions to the stock level constrained optimization problem. The outcome of this paper can be applied to lower level of logistics units (e.g. Division, Regiment) rather than higher level of logistics units of the Army (e.g. Corps, Theater) which distribute recoverable items periodically and repair the defective items transited from subordinate units.