A Technique for Evaluating Vendor Bids for Stock Replenishment of a Consumable Item.
Abstract
The Ships Parts Control Center (SPCC) Uniform Inventory Control Program (UICP) wholesale replenishment model for 1H cognizance symbol (consumable) material is an order quantity-reorder level or (Q,r) model. A stocked item's order quantity and reorder level are established in large part by the unit price and procurement lead time forecasted for it. When a replenishment is needed, the order quantity is specified and the procurement officer requests bids from vendors. These bids include both a unit price and production lead time. This thesis analyzes the influence of different bids with different unit price and different lead time on the future optimum total annual cost of stocking the item as computed by the UICP model. Based on this anlaysis, a simple technique to evaluate those bids is developed and steps to implement this technique are suggested. (Thesis)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1985
- Accession Number
- ADA159857
Entities
People
- J. Steinberg
Organizations
- Naval Postgraduate School