Common use of Model Description Clause in Contracts

Model Description. The interface agreement in the Min-max case consists of the repair shop having to maintain the inventory level of the Ready-For-Use parts equal to or above a minimum level. The control mechanism of the repair shop is a priority rule, based on the inventory level of SKUs, to adhere to this agreement. The priority rule used is taken into account in the model. The exact priority rule will be explained later on in this section. Inventory control specifies the turn-around stock and minimum levels for every SKU. The values for the turn-around stock and minimum levels are input parameters of the model. . The model developed has five input variables which are unique characteristics for a SKU: These values are needed as input parameters for the different elements in the model. In the following subsections, different sub processes are explained in more detail.