Accession Number : AD0749922

Title :   Poisson Stock Levels Approximation,

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

Personal Author(s) : Gabriel,R. J.

Report Date : 16 OCT 1972

Pagination or Media Count : 23

Abstract : An analysis on the effect of using the theory of the normal distribution to approximate the Poisson computation of stock levels is described. The premise of the analysis is that the approximation will reduce the computational time involved in computing stock levels using the iterative Poisson process. This analysis is therefore directed to the task of determining if and where this approximation technique can be applied accurately. The Poisson iterative process and the Normal approximation technique are utilized to compute stock levels. The results of the two computational methods are then compared. The findings indicate that the approximation technique provides accuracy which should suffice for most Navy applications. For protection levels between 1% and 99%, the maximum difference found is one unit of stock. (Author)

Descriptors :   (*INVENTORY CONTROL, *NAVAL EQUIPMENT), PROBABILITY DENSITY FUNCTIONS, MATHEMATICAL PREDICTION, ITERATIONS

Subject Categories : Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE