Accession Number : AD0686728

Title :   A MULTI-ITEM INVENTORY MODEL WITH A JOINT BACKORDER CRITERION,

Corporate Author : RAND CORP SANTA MONICA CALIF

Personal Author(s) : Miller,Bruce L.

Report Date : APR 1969

Pagination or Media Count : 25

Abstract : The paper is an investigation of the mathematical programming problem of maximizing a joint backorder (NORS) criterion subject to a budget constraint. The single-echelon model used in this study employs a criterion different from METRIC's sum of backorders. Moreover, it modifies the problem by assuming that all variables are continuous. It is proven that the NORS criterion is convex so that a global optimum can be found by a large number of nonlinear programming algorithms. It is also shown that one tends to buy more of the high-cost and high-variance items using NORS criterion. Thus, the answers obtained by the NORS criterion should line up fairly closely with Air Force intuition on stockage policy. (Author)

Descriptors :   (*INVENTORY CONTROL, *NONLINEAR PROGRAMMING), REPLACEMENT THEORY, INVENTORY CONTROL, PROCUREMENT, BUDGETS, OPTIMIZATION, ALGORITHMS, AIR FORCE EQUIPMENT

Subject Categories : Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE