Evaluation of Physical Inventory Performance Indices.

Abstract

A physical inventory model, the PCM (Penalty Cost Model) was designed to react to the economic implications of record errors and to assign resources accordingly. Thus, PCM is not concerned with record errors per se, but the economic implications of record errors. As continuing research in physical inventory, NAVSUP (Naval Supply Systems Command) directed FMSO (Fleet Material Support Office) to develop a performance index of record accuracy. This index would measure the success of physical inventory programs and permit comparisons of Navy activities. The report evaluates three indices that were tested at NAS Oceana. It also evaluates the desirability of computing the index values at various time intervals--weekly, monthly, or quarterly. Of the indices considered, the best comparison between activities is based on the relationship of the requisition frequency for an item and the dollar value of errors. (Author)

Document Details

Document Type
Technical Report
Publication Date
Oct 22, 1973
Accession Number
AD0768732

Tags

DTIC Thesaurus Topics

  • Accuracy
  • Cost Models
  • Costs
  • Errors
  • Frequency
  • Intervals
  • Inventory
  • Materials
  • Test And Evaluation
  • Time Intervals

Readers

  • Computational Modeling and Simulation
  • Logistics and Supply Chain Management.
  • Psychometric Testing or Psychological Assessment.