Project 'EOQ' (Economic Order Quantity): Feasibility of Price Discounts in Procurement of Non-Reparable Spares
AIR FORCE ACADEMY COLORADO SPRINGS CO
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The original objective of the project was an investigation of the feasibility of installing a price discount solicitation capability in AFLCs procurement system for non-reparable spares. However, the study was later broadened to include an analysis of the basic parameters used in economic order quantity computations. A technique was developed and operationally tested to solicite, evaluate and accept price discounts. A new method of computing the obsolescence rate used in economic order quantity computation was developed and tested. Several demand prediction techniques were also evaluated using four years of actual demand history.
- Logistics, Military Facilities and Supplies