Investigation of the Cost/Effectiveness of Numerical Control Manufacture of Quick Reaction Spare Parts.
DARCOM INTERN TRAINING CENTER TEXARKANA TEX
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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
- Economics and Cost Analysis
- Manufacturing and Industrial Engineering and Control of Production Systems