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A model of a two-echelon (two levels of repair, one level of supply) repairable-item provisioning system is presented. It is desired to find the capacities of the base and depot repair facilities as well as the spares level which together guarantee a specified system service level at minimum cost. Closed queueing network theory is used to model the stochastic process, and an implicit enumeration algorithm is used to solve the optimization problem.
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