Accession Number : AD0760680

Title :   Penalty Cost Model Post Implementation Evaluation,

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

Personal Author(s) : Crum,G. S.

Report Date : 21 MAY 1973

Pagination or Media Count : 24

Abstract : Due to a diminishing work force, NAVSUP (Naval Supply Systems Command) was required to find a more economical method for selected items to be inventoried. NAVSUP requested FMSO (Navy Fleet Material Support Office) to develop a method based on shortages avoided and procurements delayed. In response to this request, FMSO developed the PCM (Penalty Cost Model). The PCM has been applied to locally managed items at UADPS (Uniform Automated Data Processing System) activities since 1 Jul 1971. The first year results show decreases in inventory workload, warehouse refusal rate, and major error rate while increasing net supply effectiveness and average dollar gain per inventory. (Author)

Descriptors :   (*NAVAL EQUIPMENT, *INVENTORY CONTROL), INVENTORY ANALYSIS, LOGISTICS, COST EFFECTIVENESS, SPARE PARTS, INVENTORY CONTROL, WAREHOUSES, MANAGEMENT PLANNING AND CONTROL

Subject Categories : Operations Research
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE