A simulation of alternatives for wholesale inventory replenishment
Roth, Geoffrey F.
MetadataShow full item record
The Navy Supply Systems Command holds $21 billion of inventory across 430,000 repair part line items in support of ongoing naval operations. Selecting the correct reorder point for each of those line items requires a careful balance between tying up precious funding by holding too much inventory that may not be issued, and not holding enough inventory to meet customer demands in a timely fashion. This thesis compares three different methods for selecting the reorder point. The first method is a calculation that offers no attempt at optimization but is simple to understand. The second method is provided by a contractor and uses some optimization with unknown algorithmic details. The last method is a mixed-integer, linear optimization model. Comparative Inventory Simulation, a discrete event simulation model, is designed to find fill rates achieved for each National Item Identification Number under the different reorder methods. We find that average fill rates are higher in 22 out of 24 cases, and average backorder lengths are up to 50% shorter, using the last method.
Approved for public release; distribution is unlimited
Showing items related by title, author, creator and subject.
Bennett, Joseph F. (Monterey, California. Naval Postgraduate School, 1996-12);Inventory reduction is one of the most critical areas facing DoD in this era of diminishing resources and increasing global commitments. This thesis analyzes the concept of cycle time reduction as a significant method to ...
Castillo, Steven Anthony (Monterey, California. Naval Postgraduate School, 1989-03);This thesis proposes a method for setting inventory levels for a suite of spares for a ship subsystem. The method extends the one proposed by Judge and Leutjen which uses a computer simulation model called TIGER to modify ...
COMPARING NAVAL-INVENTORY FILL RATES FROM COMPOSITE AND REPAIR-AND-PROCURE SUPPLY SYSTEMS THROUGH DISCRETE EVENT SIMULATION Hays, Brian H. (Monterey, CA; Naval Postgraduate School, 2019-06);Naval Supply Systems Command Weapon Systems Support currently uses Distributed Requirement Planning (DRP) to generate repair and procurement quantity recommendations for Supply Class IX repair parts. In an effort to provide ...