An application and comparison of static marginal analysis and generalized Lagrange multipliers in generating a U.S. Navy repair materials requirement list.
Christensen, Jan Dyhr
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An analysis is made of current Single Supply Support Control Point procedures for developing a Repair Material Requirements List. The objective is to minimize the expected cost of stockouts over all line items subject to a budget constraint. Static Marginal Analysis and Generalized Lagrange Multipliers are utilized in the generation of a revised Repair Material Requirements List. The revised and the present generation techniques are compared by the use of a simulation of a R3350 aircraft engine overhaul production facility. Both the Static Marginal Analysis and the Generalized Lagrange Multipliers techniques drastically reduced the number of stockouts and the number of subsequent orders. Given a choice between these techniques the Generalized Lagrange Multiplier approach appears preferable because it requires substantially less computer time to generate the list than did the Static Marginal Analysis.
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