Management of inventory to reduce outages in supply feeder

The paper presents an application of dynamic programming to optimal allocation of resources in spare items to increase reliability of supply. The System Average Interruption Duration Index (SAIDI) has been selected as the performance index. Distribution transformers have been selected to investigate the applicability of the proposed approach to distribution network equipment. The paper provides an analysis of relationships between the index assumed and parameters of distribution systems. Results of optimization for four levels of budget limitation show that resources can be allocated in the best way by dynamic programming but results depend on the assumed performance index and its parameters.