Publication:
The use of simulation to evaluate inventory models for management of hazardous material

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Authors
Collins, Bobbi L.
Stroh, Gregory F.
Subjects
Advisors
McMasters, Alan W.
Kang, Keebom
Date of Issue
1995-12
Date
December 1995
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
A problem for the Navy Supply System is identifying the proper inventory model for managing a Hazardous Material Minimization Center. This thesis analyzes three recently proposed inventory models: two continuous review economic order quantity (EOQ) inventory models and a periodic review inventory model. Based on this analysis, the authors develop both a continuous review EOQ model and a periodic review model for evaluation. These models differ from the previous ones in that they comprise all of the relevant hazardous material inventory costs including extension of shelf-life. The two new models are then evaluated through the use of simulation. A base set of data was first used in simulating both models. This was then followed by four additional simulated scenarios providing sensitivity analyses of demand-related changes to each model. The thesis' analysis focuses on total variable costs as the primary tool for evaluating the models. The results in all cases were very close, suggesting that it can be left to the inventory managers as to whether to use a continuous review or periodic review model. Additional testing with actual demand data is strongly recommended before any implementation of either model.
Type
Thesis
Description
Series/Report No
Department
Management
Organization
Identifiers
NPS Report Number
Sponsors
Funder
NA
Format
166 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.
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