| Abstract: | An empirical simulation was used to investigate the economics of minimum-buy policies in the U.S. Army management of spare-parts inventory. An empirical simulation makes use of historical data as direct input to the simulation rather than randomly generated data based on a characterization of the historical data. Empirical simulation alleviates the drawbacks of characterizing historical data with a theoretical distribution; however, because steady-state conditions are not reached, a methodological problem arises in the evaluation of inventory assets at the end of the simulation. Our solution was to minimize this problem by use of a cyclic approach. |
