Accession Number : ADA133573

Title :   Nonparametric Levels Setting,

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

Personal Author(s) : Mellinger,John A ; Urban,Anton P

PDF Url : ADA133573

Report Date : 02 Sep 1983

Pagination or Media Count : 63

Abstract : This study evaluates four distribution free or nonparametric methods for setting levels for low and medium demand items. The study also analyzes additional techniques for setting the order quantity and the inclusion of economic considerations in setting levels. Performance in the study was measured in terms of an economic statistic resulting from dividing Supply Material Availability (SMA) by the dollar value of the on-hand inventory and the due-in material. The performance indicates that for low demand items, the reorder level should be calculated using the Ordinal Leadtime Method with the order quantity (Q) set equal to one and that purchases be made using the trend purchase criteria. For medium demand items, the Ordinal Leadtime Method for calculating the reorder level with Q calculated using the Wilson Economic Order Quantity formula and purchases made using the Trend Purchase Criteria shows an improvement in terms of the performance statistic over th unacceptable; therefore, it is recommended that current procedures for controlling the inventory of medium demand items be retained. (Author)

Descriptors :   *Naval logistics, *Logistics management, Demand(Economics), Inventory analysis, Nonparametric statistics, Distribution(Economics), Confidence limits

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

Distribution Statement : APPROVED FOR PUBLIC RELEASE