Accession Number : AD0768731

Title :   Application of the Penalty Cost Model to Centrally Managed Items,

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

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

Report Date : 17 OCT 1973

Pagination or Media Count : 35

Abstract : The report compares and evaluates the current UICP (Uniform Inventory Control Point) physical inventory selection method with PCM (Penalty Cost Model). The report also evaluates the sensitivity of parameter changes in the UICP physical inventory program. Analysis of ICP inventories demonstrated that the number of inventories can be drastically reduced without adversely affecting requisition effectiveness while also increasing the net worth of taking the inventory. Thus, inventorying resources are used in a more cost effective manner. (Modified author abstract)

Descriptors :   (*NAVAL EQUIPMENT, *INVENTORY CONTROL), COSTS, MATHEMATICAL MODELS, NAVAL PROCUREMENT, SENSITIVITY, DECISION THEORY

Subject Categories : Administration and Management
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE