A Multi-Item Inventory Model for Combat Stores Ships.
NAVAL POSTGRADUATE SCHOOL MONTEREY CALIF
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The inventory model currently used by Combat Stores Ships AFSS is described and criticized. A simplified procedure for treating essentiality is presented. A multi-item inventory model was developed which minimizes the expected value of essentiality weighted units short, subject to a constraint on total investment. With only slight modification, the model can be made to minimize the expected value of essentiality-weighted requisitions short. In tests using actual AFS demand data, the proposed model was compared to the current model and found to be markedly superior specifically, the model was much less expensive to operate in terms of investment levels for fixed levels of performance in terms of essentiality-weighted units short and in terms of line item effectiveness. At the 95 line item effectiveness level, for example, the proposed model required less than one third the investment required by the current model. An important by-product of the analysis was the discovery that AFS inventory demand conforms closely to a mixed Bernoulliexponential probability distribution. Author
- Marine Engineering
- Logistics, Military Facilities and Supplies