An Economic Retention Model for Excess Navy Material
NAVY FLEET MATERIAL SUPPORT OFFICE MECHANICSBURG PA OPERATIONS ANALYSIS DIV
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This study evaluates alternative UICP Navy Economic Retention models. The current Navy Economic Retention Model was developed in 1965 for consumables only and was restricted in precision by computer constraints and simplifying assumptions. A replacement model is proposed that applies to RFI Ready-for- Issue consumable and repairable assets, as well as NRFI Not-Ready-For-Issue repairable assets. The proposed model represents an improved mathematical formulation that takes advantage of current ADP Automatic Data Processing capabilities and, thus, eliminates many simplifying assumptions of the current model. The proposed model, under current constraints, computed a lower economic retention requirement for the total of all Navy items. Holding costs were expected to decrease between 165K and 331K. However, implementation of the proposed model based solely on economic criteria would increase the economic retention quantities and increase holding costs between 47,387K and 83,451K.
- Logistics, Military Facilities and Supplies