A Multi-Item Inventory Model for Combat Stores Ships.
Abstract
The inventory model currently used by Combat Stores Ships (AFS'S) is described and criticized. A simplified procedure for treating essentiality is presented. A multi-item inventory model was developed which minimizes the expected value of essentiality weighted units short, subject to a constraint on total investment. With only slight modification, the model can be made to minimize the expected value of essentiality-weighted requisitions short. In tests using actual AFS demand data, the proposed model was compared to the current model and found to be markedly superior; specifically, the model was much less expensive to operate (in terms of investment levels) for fixed levels of performance (in terms of essentiality-weighted units short and in terms of line item effectiveness). At the 95% line item effectiveness level, for example, the proposed model required less than one third the investment required by the current model. An important by-product of the analysis was the discovery that AFS inventory demand conforms closely to a mixed Bernoulli/exponential probability distribution. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1975
- Accession Number
- ADA018312
Entities
People
- Charles Floyd Taylor Jr
Organizations
- Naval Postgraduate School