Accession Number:

AD0755863

Title:

Impact of Using Non-Optimal Reorder Points.

Descriptive Note:

Technical note,

Corporate Author:

ARMY LOGISTICS MANAGEMENT CENTER FORT LEE VA

Personal Author(s):

Report Date:

1973-01-01

Pagination or Media Count:

23.0

Abstract:

A steady state inventory system with an R,Q type ordering policy, Poisson demand, and fixed lead times is considered. It is formally shown that the cost of ordering one time at asset level R1 rather than asset level R2 is equal to the difference in average cost per cycle of always ordering at R1 versus always ordering at R2. This is true regardless of when future orders are placed. Areas to which this result has practical application are identified. Author

Subject Categories:

  • Logistics, Military Facilities and Supplies
  • Administration and Management
  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE