Consider the telecommunication signal transmission facility spare part supporting system in tele-communication company in China. The facility has mainly two critical parts: transmission tower, and base station. It is strictly required that a failing part needs to be replaced in a given short time, to ensure the normal operations. On the other hand, the inventory holding cost for these spare parts is very high. 1. What uncertain factors in the spare part inventory the company should consider? 2. How do you balance the economies of scale and quick response ability when considering the number of warehouses?
