Accession Number:

AD0686728

Title:

A MULTI-ITEM INVENTORY MODEL WITH A JOINT BACKORDER CRITERION,

Descriptive Note:

Corporate Author:

RAND CORP SANTA MONICA CALIF

Personal Author(s):

Report Date:

1969-04-01

Pagination or Media Count:

25.0

Abstract:

The paper is an investigation of the mathematical programming problem of maximizing a joint backorder NORS criterion subject to a budget constraint. The single-echelon model used in this study employs a criterion different from METRICs sum of backorders. Moreover, it modifies the problem by assuming that all variables are continuous. It is proven that the NORS criterion is convex so that a global optimum can be found by a large number of nonlinear programming algorithms. It is also shown that one tends to buy more of the high-cost and high-variance items using NORS criterion. Thus, the answers obtained by the NORS criterion should line up fairly closely with Air Force intuition on stockage policy. Author

Subject Categories:

  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE