INVENTORY POLICIES FOR A MULTI-ECHELON SUPPLY SYSTEM WITH FIXED ORDER COSTS AT LOWER ECHELONS

Abstract

This report concerns the problem of approximating optimum (least-cost) inventory policies for a multi-echelon supply system with fixed order costs at lower echelons. First, the technique for computing the approximate policies is explained in nonmathematical terms. The sensitivity of these policies, and their resulting costs, to changes in parameter values is then investigated. Finally, the effect of implementing these approximate policies in a multi echelon supply system is studied in an effort to determine the cost increase over the theoretically optimum cost. The resulting cost increase is less than 3 percent for a typical inventory

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1961
Accession Number
AD0408521

Entities

People

  • Alan J. Gradwohl

Tags

Communities of Interest

  • Advanced Electronics

DTIC Thesaurus Topics

  • Case Studies
  • Computations
  • Computer Programming
  • Computer Programs
  • Computers
  • Contracts
  • Cost Reductions
  • Costs
  • Dynamic Programming
  • Government Procurement
  • Governments
  • Inventory
  • Prisoners Of War
  • Procurement
  • Sensitivity
  • Steady State
  • Test And Evaluation

Readers

  • Control Systems Engineering.
  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.