Accession Number : AD0837027

Title :   COSTS OF OPERATING AN INVENTORY SYSTEM WITH INACCURATE RECORDS.

Descriptive Note : Master's thesis,

Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Personal Author(s) : Daeschner, William Edward

Report Date : JUN 1968

Pagination or Media Count : 49

Abstract : Changes in costs and in several effectiveness measures due to the introduction of errors into inventory records are investigated using Monte Carlo computer simulation of a multiple item, single warehouse, single inventory manager inventory system operating under a procurement budget constraint. Demands are generated using a 'stuttering Poisson' stochastic process and transactions are processed on a daily basis. Parameters for the stochastic processes are obtained from line item input data by the method of moments. Stock is reordered using U. S. Navy UICP decision rules; stochastic lead times are generated for each order. Discrepancies of various types are introduced at rates reflecting estimates obtained from a large naval supply center. Changes in costs due to discrepant records are found to be significantly large. Comments are offered on the selection of a measure of effectiveness and its relationship to the decision making process. Suggestions are made for subsequent research. (Author)

Descriptors :   *INVENTORY CONTROL, RECORDS, COSTS, ACCURACY, ERRORS, MONTE CARLO METHOD, SIMULATION, STOCHASTIC PROCESSES, LEAD TIME, DECISION MAKING, THESES, COMPUTER PROGRAMS.

Subject Categories : Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE