Wholesale level reorder point and reorder quantity computation during periods of declining demand
Lilli, Charles M.
Husson, Charles R.
Moore, Thomas P.
MetadataShow full item record
For several decades the U.S. Navy has used a set of specific mathematical inventory models to help wholesale item managers make management decisions concerning consumable items of material. Implicit in these models is the assumption that the mean of quarterly demand for an item remains constant over time. This assumption is violated often, particularly during periods of force reduction or when equipment is retired. When this declining demand pattern occurs, the inventory models usually keep stock levels too high. This results in excess material known as inapplicable inventory. Recently, inapplicable inventory in the Navy was estimated to be as high as 10.4 billion dollars. Navy logisticians have invested a great deal of effort in solving this problem, mainly by focusing on forecasting. While improved forecasting may reduce inapplicable inventory to some extent, it will not, by itself, solve the problem This research has explored the problem of inapplicable inventory, its model- based causes and alternative solutions. The resulting inventory model, designed to work easily within the existing Navy UICP inventory information system, significantly reduced inapplicable inventory in several simulations which were run in this research
RightsThis 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.
Showing items related by title, author, creator and subject.
Forecasting and inventory area model choice Jaw, Ping Yang. (Monterey, California. Naval Postgraduate School, 1995-03);Inventory control is an important element of both business and military cost control and readiness. The Taiwan Army Logistic Agency (TALA) has used a combination of mathematical inventory models, arithmetic average, three ...
Calculations of Neutron Time-Energy Distributions in Heavy Moderators Williamson, T.J.; Albrecht, R.W. (1970);The task of making detailed neutronics calculations for heavy moderating isotopes has always been a most difficult problem for a variety of reasons. Consider, for instance, the problem of calculating the time and energy ...
Minimizing expected shortages in a multi-item inventory system Howard, Gilbert Thoreau (Monterey, California. Naval Postgraduate School, 1971-01); NPS55HK71011AA formulation is given for minimizing the expected total number of shortages in a multi-item inventory system under a continuous review policy. The variable reorder levels and order quantities must be set to meet constraints ...