Accession Number:

AD0608858

Title:

A DYNAMIC INVENTORY SYSTEM,

Descriptive Note:

Corporate Author:

WISCONSIN UNIV MADISON MATHEMATICS RESEARCH CENTER

Personal Author(s):

Report Date:

1964-07-01

Pagination or Media Count:

28.0

Abstract:

A truly dynamic system is one which will adjust to changes in the parameters of the system. In the case of an inventory control procedure these parameters determine the frequency distributions of demand and of lead time. Optimization approaches assume them given along with run-out costs, inventory carrying costs and so forth. The parameters, the costs and some decision rule combine to give an equation representing total cost which is then minimized with respect to the decision rule. There are two difficulties with this approach first, changes in the parameters do occur which invalidate the results and secondly, it is very difficult indeed to determine the costs in the model. The proposed servo-system attempts to avoid these two difficulties by not fixing any parameters distributions and by omitting any costs in the model, only employing some level of protection against run-out. Author

Subject Categories:

Distribution Statement:

APPROVED FOR PUBLIC RELEASE