A DYNAMIC INVENTORY SYSTEM,

Abstract

A truly dynamic system is one which will adjust to changes in the parameters of the system. In the case of an inventory control procedure these parameters determine the frequency distributions of demand and of lead time. Optimization approaches assume them given along with run-out costs, inventory carrying costs and so forth. The parameters, the costs and some decision rule combine to give an equation representing total cost which is then minimized with respect to the decision rule. There are two difficulties with this approach; first, changes in the parameters do occur which invalidate the results; and secondly, it is very difficult indeed to determine the costs in the model. The proposed servo-system attempts to avoid these two difficulties by not fixing any parameters (distributions) and by omitting any costs in the model, only employing some level of protection against run-out. (Author)

Document Details

Document Type
Technical Report
Publication Date
Jul 01, 1964
Accession Number
AD0608858

Entities

People

  • William G. Howe

Organizations

  • University of Wisconsin–Madison

Tags

DTIC Thesaurus Topics

  • Equations
  • Frequency
  • Inventory
  • Inventory Control
  • Lead Time
  • Optimization
  • Production Management Methods
  • Scheduling (Production)
  • Time

Readers

  • Computational Modeling and Simulation
  • Control Systems Engineering.
  • Life Cycle Cost Analysis