A model for evaluating vendor bids for stock replenishment of an item.

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Authors
Gray, Richard D.
Subjects
Inventory Model
Uniform Inventory Control Program (UICP) Price break models
Procurement
Advisors
McMasters, Alan W.
Date of Issue
1984
Date
December 1984
Publisher
Language
en_US
Abstract
The Ships Parts Control Center (SPCC) Uniform Inventory Control Program (UICP) wholesale replenishment model for 1H cognizance symbol (consumable) material is an order quantityreorder level or (Q,r) model. A stocked item's order quantity and reorder level are established in large part by the unit price and procurement lead time forecasted for it. When a replenishment is needed, the order quantity is specified and the procurement officer requests bids from vendors. These bids include both a unit price and an estimate of production lead time. The thesis examines the impact of differences between the forecasted and actual values for lead time apd price on the optimum total annual cost of stocking the item as computed by the UICP model. A modification of the model for comparison of the total annual cost associated with the lead time and price combination of each vendor bid is developed. Some expected effects of implementing the model are discussed and areas requiring further research are identified.
Type
Thesis
Description
Series/Report No
Department
Administrative Sciences
Organization
Identifiers
NPS Report Number
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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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