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This paper studies an inventory system where demand is satisfied by recovered and new purchased items.
Term (1.3) represents the reconfiguration cost of cells occurring in (1) installing a new purchased machine or (2) transferring a machine between two locations in the cells.
Since there is no machine relocation between periods, the only cost which is incurred for relocation is related to installing new purchased machines in the first period.
This cost is paid for several situations: (1) to install a new purchased machine or a machine returned from the machine depot; (2) to uninstall a machine removed from a cell and kept in the machine depot; and (3) to transfer a machine between two different locations.
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