Accession Number : AD0278471

Title :   STATISTICAL MANAGEMENT OF INVENTORY

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : CAHN,A.S. ; WAGNER,H.M.

Report Date : JUN 1962

Pagination or Media Count : 1

Abstract : This Memorandum discusses the use of statistical aggregates to improve inventory management, and methods to evaluate control scheme based on their use. To examine a control system, six stages of analysis are useful: (1) deciding what operations warrant control; (2) ascertaining what actions are available to constrain operating decisions; (3) deciding to whom control responsibilities shall be delegated; (4) evaluating the economic worth of the control system objectives, including the cost of making mistakes during the process of controlling; (5) examining the operating characteristics of the control system; and (6) ynthesizing previous information for economic evaluation of the entire control system. The framework for the analysis is 'statistical decision theory.' T HE Memorandum presents an illustrative example which is complex enough to demon trate the poi ts involved. (Author)

Descriptors :   CONTROL SYSTEMS, PROBABILITY

Distribution Statement : APPROVED FOR PUBLIC RELEASE