The effect of the covariance factor on the Procurement Problem Variance of net leadtime demand
Loading...
Authors
Adams, Keith T.
Subjects
Covariance
Variance
Standard deviation
Leadtime
Demand
Repairables
inventory models
ICP's
Inventory Control Points
Wholesale
Variance
Standard deviation
Leadtime
Demand
Repairables
inventory models
ICP's
Inventory Control Points
Wholesale
Advisors
McMasters, Alan W.
Read, Robert R.
Date of Issue
1988-09
Date
Publisher
Language
en_US
Abstract
An analysis is made of the formulae used by the Navy's Inventory
Control Points in calculating the variance of Net Leadtime Demand of repairable
items. A new formula is then derived, which makes use of actual calculations of
covariance between regenerations and demands. The resulting variance values
derived from the new formula are compared with the variance values resident on
the Navy's Ships Parts Control Center data base and are shown to produce lower
variances. The new formula is also compared to the option path formula to
determine which formula produces the smallest variance. The comparison suggests
an under-estimation of variance results when the option path with its estimate of
the covariance is used. The thesis concludes with recommendations for
implementation of the new formula.
Type
Thesis
Description
Series/Report No
Department
Operations Research
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
35 p.
Citation
Distribution Statement
Approved for public release; distribution is unlimited.