Publication:
A methodology for comparing the variable costs of the continuous and periodic review models.

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Authors
Knaggs, Christopher D.
Subjects
inventory analysis
models
continuous
periodic
review
cost models
Advisors
McMasters, Alan W.
Date of Issue
1984-03
Date
March 1984
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
The optimal use of the continuous review model requires that an inventory system be examined after the receipt of every demand. Sometimes a delay can be encountered in the timing of these reviews due to several uncontrollable factors. As the length of these delays increases, a point is reached where it is better to switch the inventory system to a periodic review model. This thesis develops a methodology by which this point can be found for varying cost factors and demand levels. Using simulation, an example series of curves is presented that demonstrates the optimal point to switch inventory models for selected lead times. If delays are expected in the time between reviews , using the methodology offered in this paper will provide the manager an informational criterion for deciding what inventory model to use in a stocking system.
Type
Thesis
Description
Series/Report No
Department
Administrative Sciences
Other Units
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
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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