A Comparison of Inventory Safety Stock Calculation Methods for the Air Force Commissary Service
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH
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This study examined alternative methods of computing safety stock in the commissary operating environment. Safety stock calculation methods designed to deliver a predetermined level of customer service were the primary area of concentration. AFCOMS provided the data for this research, which was from the Randolph AFB commissary store. Current safety stock levels constituted the baseline for this study. Another method, recommended by Bytronic Technologies Corporation, was also tested. A regression model was built to relate customer service level Not-In-Stock RateNIS to measure of buffer stock and demand variability . A Slam II simulation model of a commissary store inventory system was used to test the performance of each technique. It was determined that none of the methods was clearly superior to the others. Baseline safety stock levels are set too low to attain AFCOMS goal of a two percent NIS rate. The targeted service level methods over-allocated safety stock to all but the high demand items. NIS rates of other than high demand items were consistently below the target level. The Bytronic method performed well with high variability items, but was ineffective with other items.
- Logistics, Military Facilities and Supplies