Accession Number : AD0689562
Title : INVENTORY SYSTEMS WITH IMPERFECT DEMAND INFORMATION.
Descriptive Note : Technical rept.,
Corporate Author : DECISION STUDIES GROUP PALO ALTO CA
Personal Author(s) : Morey, Richard C. ; Iglehart, Donald L.
Report Date : 01 MAY 1969
Pagination or Media Count : 39
Abstract : The report studies inventory systems in which demand information can be incorrectly transmitted from the field to the stockpoint. Keypunching errors and improper preparation of requisitions are examples of the types of causes that may give rise to such a situation. The main effect of such errors is that supply points may process demands which are considerably different than the true demands, and hence increase the total systems operating cost. A study of the increased cost as a function of the variability of the errors is necessary to determine the amount and direction of effort that should be spent to deal with them. Two main types of analyses are presented. The first is a dynamic programming approach which determines the optimal ordering procedure for the general n period problem. A second approach has used a steady state analysis to assess the dollar impact of the errors. (Author)
Descriptors : *COSTS), (*INVENTORY, (*DATA TRANSMISSION SYSTEMS, ERRORS), IMPACT, MANAGEMENT ENGINEERING, MATHEMATICAL MODELS, STATISTICAL PROCESSES, INVENTORY ANALYSIS, INVENTORY CONTROL.
Subject Categories : Logistics, Military Facilities and Supplies
Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE