Accession Number : AD0709065

Title :   A CONTINUOUS REVIEW INVENTORY ORDERING POLICY WITH AN EXPEDITED SHIPPING TIME OPTION.

Descriptive Note : Master's thesis,

Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CALIF

Personal Author(s) : Eggleston,Daniel Maurice , Jr

Report Date : APR 1970

Pagination or Media Count : 37

Abstract : A continuous review policy for ordering inventory stockage items with the option of expediting the shipping time is formulated. Demand is assumed to have a Poisson distribution with a stationary demand rate. Inventory holding costs, ordering costs, shortage costs and expediting costs are postulated. The measure of effectiveness is the minimization of a linear combination of these costs. The optimal policy is determined analytically through the use of first differences. An iterative computational procedure is recommended for obtaining the optimal order quantity, reorder point and expediting level. Analysis of the first differences indicates the conditions under which there is a solution and a simple numerical test for these conditions is developed. A numerical example is given. (Author)

Descriptors :   (*INVENTORY CONTROL, MATHEMATICAL MODELS), (*MANAGEMENT PLANNING AND CONTROL, INVENTORY), DECISION MAKING, TIME, STATISTICAL DISTRIBUTIONS, OPTIMIZATION, NUMERICAL METHODS AND PROCEDURES, THESES

Subject Categories : Administration and Management

Distribution Statement : APPROVED FOR PUBLIC RELEASE