RE-ORDER POINTS (THE CALCULATION OF PREFERRED RISKS)

Abstract

Safety levels at the Ships Parts Control Center have been set such that the risk of a shortage over the procurement lead time is 15% for all items. Expressed conversely, we have set safety stocks to yield an 85% protection against system-wide stock outs. The motivation for this is a Bureau of Supplies and Accounts policy decision--somewhat obscure in its origin--which set an effectiveness objective of 85% for the SPCC. It is our purpose here to investigate what improvements might be made within the limitations of that decision.

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Document Details

Document Type
Technical Report
Publication Date
Oct 10, 1960
Accession Number
AD0488270

Entities

People

  • H. F. Mills

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Commerce
  • Commodities
  • Computations
  • Contract Administration
  • Contractors
  • Errors
  • Inventory
  • Lead Time
  • Motivation
  • Normal Distribution
  • Probability
  • Safety
  • Sampling
  • Supply Depots
  • System Safety
  • Test And Evaluation

Readers

  • Aviation Safety Risk Assessment.
  • Logistics and Supply Chain Management.
  • Regression Analysis.