Nonparametric Levels Setting,

Abstract

This study evaluates four distribution free or nonparametric methods for setting levels for low and medium demand items. The study also analyzes additional techniques for setting the order quantity and the inclusion of economic considerations in setting levels. Performance in the study was measured in terms of an economic statistic resulting from dividing Supply Material Availability (SMA) by the dollar value of the on-hand inventory and the due-in material. The performance indicates that for low demand items, the reorder level should be calculated using the Ordinal Leadtime Method with the order quantity (Q) set equal to one and that purchases be made using the trend purchase criteria. For medium demand items, the Ordinal Leadtime Method for calculating the reorder level with Q calculated using the Wilson Economic Order Quantity formula and purchases made using the Trend Purchase Criteria shows an improvement in terms of the performance statistic over th unacceptable; therefore, it is recommended that current procedures for controlling the inventory of medium demand items be retained. (Author)

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Sep 02, 1983
Accession Number
ADA133573

Entities

People

  • Anton P. Urban
  • John A. Mellinger

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Air Force
  • Data Science
  • Information Science
  • Inventory Control
  • Logistics
  • Logistics Management
  • Materials
  • Naval Operations
  • Navy
  • Operations Research
  • Plastic Explosives
  • Probability
  • Probability Distributions
  • Simulations
  • Simulators
  • Statistics
  • Supply Depots

Readers

  • Logistics and Supply Chain Management.
  • Organizational Psychology.