An approximate goal constraint model for ammunition inventory.
Hehnen, Mark Thomas
Schrady, David A.
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The paper contends that the standard economic approach to inventory control may not be as valid in a military context as a goal constrained model which optimizes a performance criteria. The argument is applied to an ammunition system in a combat zone and a model is formulated to minimize expected on-hand inventory subject to constraints on required protection and order size or frequency. The model assumes that orders do not cross. Two examples, using Marine Corps data, were tested by a computer simulation that permitted orders to cross. The simulation showed that predicted average on hand levels were accurate but predicted protection was conservative. It was concluded that the model is best solved by simulation in view of the uncertainties caused by stochastic lead times and the skewness of lead time demand.
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