A Study of the Cost-Effectiveness of Inventory Management Policies Based on Average Requisition Size.
DECISION SYSTEMS DAYTON OH
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This report presents the results of a study of the relative cost-effectiveness of three variations of EOQ inventory management calculations in the context of Air Force depot supply systems. These formulas differ in the manner in which average requisition sizes are utilized in inventory levels calculations. The report contains five sections. Section I provides background for the study. Section II presents aggregate statistical characteristics for EOQ items managed by the Sacramento Air Logistics Center SMALC. Section III presents the results of analytical sensitivity analyses of the alternate formulas. Section IV discusses the major features of a retrospective inventory simulation model for evaluating the alternate policies, and Section V presents the results of simulation analyses based on this model and upon historical demand data from SMALC. Author
- Administration and Management
- Economics and Cost Analysis