A Two-Period Repair Parts Inventory Model for a Naval Air Rework Facility.
Abstract
A Ready Supply Store (RSS) containing repair parts which are anticipated to be used during the production process has been established to support the Naval Air Rework Facility (NARF). While this supporting inventory has previously been constructed using historical demand data, a model which computes stock levels based on the next quarter's production schedule has been proposed. This thesis extends the use of projected production information in calculating RSS inventory levels from one to two periods, and compares the expected total costs from both systems under the assumption of a binomial demand distribution which is appropriate to a NARF. As a result of this comparison, the conclusion is made that the two-period model offers only very minor expected cost advantages over a single-period formulation, while also being much more difficult to utilize due to the complex calculations involved in the computation process. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1982
- Accession Number
- ADA126844
Entities
People
- John J. Hund
Organizations
- Naval Postgraduate School