Accession Number : AD0736211
Title : Methodology for Determining Initial Provisioning of Insurance-Type Items.
Descriptive Note : Final rept.,
Corporate Author : DECISION STUDIES GROUP PALO ALTO CALIF
Personal Author(s) : Burton,Robert W. ; Jaquette,Stratton C.
Report Date : NOV 1971
Pagination or Media Count : 51
Abstract : Initial decisions on inventory stocking requirements for low demand items often have to be made without much knowledge of what future demand rates will be. When the nature of an item is such that little demand for it is expected, the problem of whether to initially stock or risk not stocking the item is critical. The report discusses this problem and presents decision procedures which relate an item's provisioning desirability to its expected cost, expected resupply time, current information on its likely demand rate, and on overall policy function. The policy function measures or relates the degradation to the total system of having items out of stock when demand occurs.
Descriptors : (*NAVAL PROCUREMENT, DECISION MAKING), (*INVENTORY CONTROL, MANAGEMENT ENGINEERING), INVENTORY CONTROL, COSTS, PROBABILITY, PREDICTIONS, STATISTICAL ANALYSIS
Subject Categories : Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE