Accession Number:

AD0408521

Title:

INVENTORY POLICIES FOR A MULTI-ECHELON SUPPLY SYSTEM WITH FIXED ORDER COSTS AT LOWER ECHELONS

Descriptive Note:

Corporate Author:

PLANNING RESEARCH CORP LOS ANGELES CA

Personal Author(s):

Report Date:

1961-04-01

Pagination or Media Count:

49.0

Abstract:

This report concerns the problem of approximating optimum least-cost inventory policies for a multi-echelon supply system with fixed order costs at lower echelons. First, the technique for computing the approximate policies is explained in nonmathematical terms. The sensitivity of these policies, and their resulting costs, to changes in parameter values is then investigated. Finally, the effect of implementing these approximate policies in a multi echelon supply system is studied in an effort to determine the cost increase over the theoretically optimum cost. The resulting cost increase is less than 3 percent for a typical inventory

Subject Categories:

  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE