INVENTORY SYSTEMS WITH IMPERFECT DEMAND INFORMATION.

Abstract

The report studies inventory systems in which demand information can be incorrectly transmitted from the field to the stockpoint. Keypunching errors and improper preparation of requisitions are examples of the types of causes that may give rise to such a situation. The main effect of such errors is that supply points may process demands which are considerably different than the true demands, and hence increase the total systems operating cost. A study of the increased cost as a function of the variability of the errors is necessary to determine the amount and direction of effort that should be spent to deal with them. Two main types of analyses are presented. The first is a dynamic programming approach which determines the optimal ordering procedure for the general n period problem. A second approach has used a steady state analysis to assess the dollar impact of the errors. (Author)

Document Details

Document Type
Technical Report
Publication Date
May 01, 1969
Accession Number
AD0689562

Entities

People

  • Donald Iglehart
  • Richard C. Morey

Tags

DTIC Thesaurus Topics

  • Applied Mathematics
  • Computer Programming
  • Computing-Related Activities
  • Dynamic Programming
  • Interdisciplinary Science
  • Inventory
  • Mathematical Programming
  • Mathematics
  • Steady State

Readers

  • Logistics and Supply Chain Management.
  • Regression Analysis.
  • Systems Analysis and Design