An Empirical Analysis of Three Stochastic Inventory Models in a Naval Hospital.
Abstract
An empirical study of pharmacy item demand from the Supply Department in a Naval Hospital was conducted to test three stochastic inventory models to see if investment in inventory could be reduced. The three models, A3RSR Method (Tukey), Exponential Smoothing Method, and Regression Forecasting, were run with eighteen months of demand figures to develop the forecasts and compare the models. The results were evaluated on the basis of numerical differences and dollar values of the forecasts vs. the actual demands. Exponential Smoothing proved to be slightly better, but no great differences were noted between the performances of the three models. One possible explanation was found to be excessive variance in the demand generated by the Pharmacy, due to inputs other than actual customer demands. Recommendations were made for the institution of a basic system to aid the Pharmacy in determining their actual demand. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1979
- Accession Number
- ADA068605
Entities
People
- Floyd James Dunwway
Organizations
- Naval Postgraduate School