INVENTORY MANAGEMENT ANALYSIS OF SPECTACLE FRAMES AT THE NAVAL OPHTHALMIC SUPPORT AND TRAINING ACTIVITY
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Authors
Dean, Shawn
Hawashem, Nasim
Agbo, William A.
Subjects
inventory management
economic order quantity
reorder point
economic order quantity
reorder point
Advisors
Dahel, Eddine
Date of Issue
2019-12
Date
Dec-19
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
The Defense Health Agency (DHA) has challenged each of its subordinate organizations through several initiatives to reduce costs while delivering world-class medical care. As a step toward the DHA’s cost-saving initiative, this thesis analyzes the current inventory management and recommends suitable inventory models for DHA’s largest eyewear production organization, Naval Ophthalmic Support and Training Activity (NOSTRA). This unique organization carries the most extensive inventories of lenses and spectacle frames. NOSTRA provides eyewear to all service branches, retirees, and other eligible personnel. This project evaluates 141 spectacle frame types across two fiscal years, 2017 and 2018. The analysis reveals that NOSTRA uses a combination of the periodic review and continuous review models. NOSTRA also uses three separate information technology systems, which makes it challenging to accurately forecast demand and track inventory.
The findings indicate that NOSTRA can benefit from inventory management models and substantially reduce its inventory and cost. The results of this analysis recommend that NOSTRA incorporate the economic order quantity model and ABC analysis, and utilize the joint ordering strategy. Furthermore, management can extend the frame-of-choice replacement policy to the end of the suppliers’ contract year to capture more potential savings.
Type
Thesis
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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.