Penalty Cost Model Post Implementation Evaluation,
Abstract
Due to a diminishing work force, NAVSUP (Naval Supply Systems Command) was required to find a more economical method for selected items to be inventoried. NAVSUP requested FMSO (Navy Fleet Material Support Office) to develop a method based on shortages avoided and procurements delayed. In response to this request, FMSO developed the PCM (Penalty Cost Model). The PCM has been applied to locally managed items at UADPS (Uniform Automated Data Processing System) activities since 1 Jul 1971. The first year results show decreases in inventory workload, warehouse refusal rate, and major error rate while increasing net supply effectiveness and average dollar gain per inventory. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 21, 1973
- Accession Number
- AD0760680
Entities
People
- G. S. Crum