Common use of Control Mechanisms Clause in Contracts

Control Mechanisms. Repair shop control uses the priority rule Earliest-Due-Date to adhere to the Lead-time interface agreement. The part which has the earliest due-date is repaired first. The due- date is the arriving date plus the lead-time. Inventory control assigns different lead-times to parts. The mechanism behind the assignment of lead-times is based on Song & ▇▇▇▇▇▇ (2009). Before the actual assignment is explained, first the model of Song & ▇▇▇▇▇▇ is explained shortly. 1. In this figure an inventory location is displayed. When parts need to be repaired, they are sent into repair. The repair process is not displayed in the figure. Only the two different lead-times a part that can be assigned to a part when it goes into repair, are displayed. For repair there are two different lead-times; the regular lead-time, Lr + Le and the shorter emergency lead-time, Le. These lead-times are assumed to be constant. The lead-time is the total time it needed to repair a SKU, including the transportation back to the inventory location. In the model it is assumed that the demand follows a Poisson process (Song & ▇▇▇▇▇▇, 2009).