Improving System Safety Levels at the Defense Logistics Agency
Abstract
In a deterministic inventory system charged with providing spares and repair parts, the right number of spares to carry would be exactly equal to the number of spares the customer would demand during the time it takes to obtain replacements from the relevant resupply process (i.e., procurement, repair, or the order-and-shipping process). Unfortunately, customer demands and resupply process times are not precisely predictable, and thus we need 'safety levels.' The safety level for an item is the extra stock carried above the average number of demands expected over a resupply time for the item. (We occasionally use the term pipeline to refer to the average number of demands over a resupply time - so safety levels represent the extra stock carried above the pipeline. Negative safety levels occur when the number of spares carried is less than the pipeline. ) Safety levels protect us against the statistical fluctuations that occur in most demand-and-resupply processes.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1993
- Accession Number
- ADA286037
Entities
People
- Christopher H. Hanks
- Tovey C. Bachman
Organizations
- LMI