Case Study
Using the Poisson Probability Distribution to Estimate Cost of Re-supply Spares
(The content of this paper is the opinion of Evin Stump, Sr. Systems Engineer at Galorath Incorporated) An important aspect of the operational cost of a piece of equipment is the cost of spares. Failures of components of the equipment that are subject only to random failures (as opposed to wear-out, infant mortality, and other non-random failure modes) can be modeled with the Poisson distribution.
