Accession Number:

ADA024749

Title:

Investigation of the Cost/Effectiveness of Numerical Control Manufacture of Quick Reaction Spare Parts.

Descriptive Note:

Final rept.,

Corporate Author:

DARCOM INTERN TRAINING CENTER TEXARKANA TEX

Personal Author(s):

Report Date:

1976-04-01

Pagination or Media Count:

48.0

Abstract:

This investigation is an attempt to determine the amount of inventory cost reduction that can be obtained by utilizing Numerical Control to produce spare parts. It is also an attempt to determine the parts which will produce the most significant savings. Assuming all parameters of the inventory system to be constant, except leadtime, the sensitivity of inventory cost to leadtime is derived. The elements of leadtime and the capability of Numerical Control to reduce each is presented. Significant conclusions drawn are that any reduction in leadtime will reduce inventory cost, but greater savings stem from those parts having higher demand variances. However, the amount of inventory cost reduction can be greatly dampened by a large administrative leadtime. Author

Subject Categories:

  • Economics and Cost Analysis
  • Manufacturing and Industrial Engineering and Control of Production Systems

Distribution Statement:

APPROVED FOR PUBLIC RELEASE