Methodology for Determining Initial Provisioning of Insurance-Type Items.
Abstract
Initial decisions on inventory stocking requirements for low demand items often have to be made without much knowledge of what future demand rates will be. When the nature of an item is such that little demand for it is expected, the problem of whether to initially stock or risk not stocking the item is critical. The report discusses this problem and presents decision procedures which relate an item's provisioning desirability to its expected cost, expected resupply time, current information on its likely demand rate, and on overall policy function. The policy function measures or relates the degradation to the total system of having items out of stock when demand occurs.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1971
- Accession Number
- AD0736211
Entities
People
- Robert W. Burton
- Stratton C. Jaquette