Stock Allocation in a Multi Echelon System.
Abstract
A method is developed and programmed on a computer to dynamically determine the 'optimum' stock allocation in a 3-Echelon Supply System. Based on knowledge of current on hand asset levels at the 1st Echelon (NICP) and 2nd Echelon (overseas depots) the computer program tells how many NICP assets to allocate to each overseas depot to maximize supply performance for the third echelon (depot customers). The possibility of later utilizing direct shipments from NICP to depot customer is allowed for in the allocation procedure. Some results of using the method developed in test cases are given. Also various extensions are described which would permit use of the method in varying contexts; e.g., when the 2nd echelon supplier is one of many Direct Support Units rather than an overseas depot, or when mixed modes of transportation are to be considered - sea shipment for routine replenishment and air shipment for high priority shipments. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1971
- Accession Number
- AD0723415
Entities
People
- Alan J. Kaplan
- Robert L. Deemer