COST AND EFFECTIVENESS IMPACTS OF ORDER QUANTITY CHANGES

Abstract

The report describes two methods for estimating the increased costs of setting a minimum reprocurement quantity of one year's worth of stock for Air Force Economic Order Quantity items whose annual issues are in the $1,000 to $10,000 category. One method requires that items be specified by their annual issue value; the other that they be specified both by annual demand rates and unit prices. Although more difficult and expensive to use, the second method is more accurate, particularly for items with low annual demand rates.

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Document Details

Document Type
Technical Report
Publication Date
Oct 01, 1967
Accession Number
AD0659729

Entities

People

  • James W. Houghten

Organizations

  • RAND Corporation

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Air Force
  • Computations
  • Computer Programs
  • Confidence Limits
  • Cost Effectiveness
  • Cost Estimates
  • Costs
  • Data Processing
  • Economic Analysis
  • Errors
  • Inventory
  • Investments
  • Lead Time
  • Logistics
  • Money
  • Numbers
  • Procurement

Readers

  • Logistics and Supply Chain Management.