A Cost Model of Item Migration in the Air Force Logistics Command Consumable Item Inventory
Abstract
This thesis investigates the phenomenon of item migration within the Air Force Logistics Command (AFLC) consumable item inventory. Item migration is the movement of items between the Supply Management Grouping Codes (SMGC) used by AFLC to categorize items. Since SMGCs are based on dollar value of annual demand, item migration entails substantial changes in demand rate. Migration to a higher level of demand gives rise to backorders, while downward migration may result in unneeded stock on hand, or long supply. A simplified model of the AFLC item management system provides the means for experimentation within the inventory system. By using a constant quarterly demand rate with discrete changes in the demand rate as migration occurs, the model is able to isolate the backorders and long supply resulting strictly from migration. The influences of the speed of recognition of migration, the variability of lead time, and the amount of safety level are determined by running the simulation under various conditions. An analysis of variance for the dollar value of both backorders and long supply provides insight into the negative effect of item migration on inventory performance.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1986
- Accession Number
- ADA185265
Entities
People
- Lee J. Lehmkuhl
Organizations
- Air Force Institute of Technology