In this paper, we present a simulation optimization algorithm for solving the two-echelon constrained inventory problem. The goal is to determine the optimal setting of stocking levels to minimize the total inventory investment costs while satisfying the expected response time targets for each...

Consider a two-echelon repairable inventory system consisting of a central depot and multiple stocking centers. The centers provide parts replacement service to customers and replenish their inventory from the depot, following a one-for-one policy. The depot fills center replenishment orders on...