An Economic Retention Model for Excess Navy Material

Abstract

This study evaluates alternative UICP Navy Economic Retention models. The current Navy Economic Retention Model was developed in 1965 for consumables only and was restricted in precision by computer constraints and simplifying assumptions. A replacement model is proposed that applies to RFI (Ready-for- Issue) consumable and repairable assets, as well as NRFI (Not-Ready-For-Issue) repairable assets. The proposed model represents an improved mathematical formulation that takes advantage of current ADP (Automatic Data Processing) capabilities and, thus, eliminates many simplifying assumptions of the current model. The proposed model, under current constraints, computed a lower economic retention requirement for the total of all Navy items. Holding costs were expected to decrease between $165K and $331K. However, implementation of the proposed model based solely on economic criteria would increase the economic retention quantities and increase holding costs between $47,387K and $83,451K.

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Document Details

Document Type
Technical Report
Publication Date
Mar 31, 1980
Accession Number
ADA083249

Entities

People

  • John F. Harding

Tags

DTIC Thesaurus Topics

  • Automatic
  • Computers
  • Data Processing
  • Image Processing
  • Materials
  • Precision

Readers

  • Economics
  • Logistics and Supply Chain Management.
  • Naval Personnel Management