Accession Number : AD0725152

Title :   Physical Inventory,

Corporate Author : NAVY FLEET MATERIAL SUPPORT OFFICE MECHANICSBURG PA OPERATIONS ANALYSIS DEPT

Personal Author(s) : Rorke,M. J. ; Crum,G. S. ; Kohlhaas,P. C.

Report Date : 28 MAY 1971

Pagination or Media Count : 88

Abstract : High inventory record accuracy is both costly and difficult to obtain. Analysis of errors reveals that inaccuracies cause either an early or late replenishment. The model developed in this study seeks the cost-effective goal of replenishment accuracy rather than record accuracy. A pilot test of the Penalty Cost Model reduced workload 72% with no increase in the warehouse refusal rate nor any decrease in supply effectiveness. The concept has been approved and is in the process of being implemented by the Naval Supply Systems Command. (Author)

Descriptors :   (*INVENTORY CONTROL, DECISION THEORY), (*NAVAL PROCUREMENT, COST EFFECTIVENESS), PROBABILITY, ERRORS, REPLACEMENT THEORY, COSTS, REGRESSION ANALYSIS, MATHEMATICAL MODELS

Subject Categories : Operations Research
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE