Accession Number : AD0748087
Title : Physical Inventory Decision Model.
Descriptive Note : Final rept.,
Corporate Author : ARMY LOGISTICS MANAGEMENT CENTER FORT LEE VA
Personal Author(s) : Kaplan,Alan J. ; Kirkpatrick,Bruce A. ; Orr,Donald A.
Report Date : JUN 1972
Pagination or Media Count : 134
Abstract : The study addresses the problem of devising more cost effective policies for the scheduling of Army Physical Inventories at wholesale level. The cost or investment portion of the analysis is measured in terms of the operating costs of the physical inventory activities themselves. The effectiveness or benefits derived portion is developed in terms of reduced penalty costs as reflected in supply system performance. These costs are incurred by failure to reorder items at their correct reorder points or failure to fill a requisition (when there are, in fact, assets available) as the result of an erroneous NICP record balance. While several other DoD agencies have developed and used similar approaches, this study represents unique advancements particularly in the areas of predicting error, calculation of penalty cost, and in the nature of the policies themselves. The policy recommended is identified as a modified calendar approach in which items are inventoried on the basis of elapsed time since last inventory but conditional on certain asset position rules. (Author)
Descriptors : (*INVENTORY CONTROL, ARMY EQUIPMENT), ARMY PROCUREMENT, DECISION THEORY, COST EFFECTIVENESS, SCHEDULING, MATHEMATICAL MODELS, MANAGEMENT PLANNING AND CONTROL, ERRORS, REGRESSION ANALYSIS, PROBABILITY, COMPUTER PROGRAMMING
Subject Categories : Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE