Accession Number : AD0768732

Title :   Evaluation of Physical Inventory Performance Indices.

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

Report Date : 22 OCT 1973

Pagination or Media Count : 46

Abstract : A physical inventory model, the PCM (Penalty Cost Model) was designed to react to the economic implications of record errors and to assign resources accordingly. Thus, PCM is not concerned with record errors per se, but the economic implications of record errors. As continuing research in physical inventory, NAVSUP (Naval Supply Systems Command) directed FMSO (Fleet Material Support Office) to develop a performance index of record accuracy. This index would measure the success of physical inventory programs and permit comparisons of Navy activities. The report evaluates three indices that were tested at NAS Oceana. It also evaluates the desirability of computing the index values at various time intervals--weekly, monthly, or quarterly. Of the indices considered, the best comparison between activities is based on the relationship of the requisition frequency for an item and the dollar value of errors. (Author)

Descriptors :   (*INVENTORY CONTROL, NAVAL EQUIPMENT), MANAGEMENT PLANNING AND CONTROL, COSTS, ERRORS, GRAPHICS, MATHEMATICAL MODELS, EFFICIENCY

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

Distribution Statement : APPROVED FOR PUBLIC RELEASE