Development of inventory models in support of the Hazardous Material Minimization Center concept at FISC, Puget Sound
Piburn, James T.
Smith, Hugh C.
McMasters, Alan W.
Fields, Paul J.
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This thesis presents an in-depth analysis of the proposed Hazardous Material Minimization Center Concept projected to be prototyped in the Puget Sound, Washington area in an effort to optimize inventory levels. It examines preexisting Hazardous Material operations at NAWS Point Mugu, CA, and five sites in the Puget Sound, WA area in an effort to incorporate the positive qualities into the prototype. The thesis analyzes the suitability of the Hazardous Material Inventory Control System (HICS) to generate sufficient data for inventory optimization and provides an analysis of data generated by the HICS system at the Point Mugu operation. Additionally, it examines components of and potential forecasting methods for demand and lead time and provides an analysis of the variable inventory management costs associated with operating a Hazardous Material Minimization Center including ordering, holding, disposal, backorder and transportation costs. This information is used to develop two mathematical inventory models which can be used to determine reorder points and order quantities to minimize total variable costs for a given level of customer service. The next research step is to conduct a pilot study involving one or two established customers in an effort to begin refinement of these forecasting and inventory modeling techniques.
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