STATISTICAL MANAGEMENT OF INVENTORY

Abstract

This Memorandum discusses the use of statistical aggregates to improve inventory management, and methods to evaluate control scheme based on their use. To examine a control system, six stages of analysis are useful: (1) deciding what operations warrant control; (2) ascertaining what actions are available to constrain operating decisions; (3) deciding to whom control responsibilities shall be delegated; (4) evaluating the economic worth of the control system objectives, including the cost of making mistakes during the process of controlling; (5) examining the operating characteristics of the control system; and (6) ynthesizing previous information for economic evaluation of the entire control system. The framework for the analysis is 'statistical decision theory.' T HE Memorandum presents an illustrative example which is complex enough to demon trate the poi ts involved. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1962
Accession Number
AD0278471

Entities

People

  • A.s. Cahn
  • H.m. Wagner

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Control Systems
  • Data Science
  • Decision Theory
  • Information Science
  • Inventory
  • Knowledge Management
  • Statistical Decision Theory
  • Test And Evaluation

Readers

  • Logistics and Supply Chain Management.
  • Snow Cover Descriptors for Reptiles and Their Illustrations.
  • Systems Analysis and Design