Forecasting and inventory area model choice
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Authors
Jaw, Ping Yang.
Subjects
Advisors
Brown, David G.
Liao, Shu S.
Date of Issue
1995-03
Date
March 1995
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
Inventory control is an important element of both business and military cost control and readiness. The Taiwan Army Logistic Agency (TALA) has used a combination of mathematical inventory models, arithmetic average, three month moving average and experience to project future demand. Implicit is that the mean of monthly demand for an item remains steady over time. This assumption has proven to be incorrect during periods of force reduction, equipment is replaced or retired, or when there is a cyclical demand. Once an unusual demand pattern occurs, inventory control becomes unpredictable. Inapplicable inventory methods in the TALA have been estimated to cost as much as several million dollars. TALA has focussed on advanced forecasting methods, Exponential Weighted Moving Average (EWMA)to solve this problem. This may reduce inapplicable inventory to some extent. Residual inventory and shortage are also factors in cost control. In this research we will explore the appropriate approach to solve these problems to make the inventory control more efficient.
Type
Thesis
Description
Series/Report No
Department
System Management
Organization
Identifiers
NPS Report Number
Sponsors
Funding
NA
Format
69 p.
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.