We find conditions under which intuitively appealing, monotone policies are optimal.
Numerical examples illustrate how different parameters of the model affect the optimal policy.
We model the operations of a logistics network which provides and repairs service parts for world-wide customers for high technology products. The system is complicated by the interaction of 2 customer classes, one with scheduled repairs and 'negative' leadtimes. The model can be used to optimally allocate inventory within the network. We formulate a model to design inspection sampling strategies based on semiconductor fab-lines.