Peak Policy for Reparable Parts
LOGISTICS MANAGEMENT INST (LMI) MCLEAN VA
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Peak policy consists of new rules for managing sporadic demand item that set reorder points based on peak highest in trailing periods demands and price-based multipliers, sets order quantities based on item price, change the threshold between replenishment and NSO, and forecast how often future demands occur instead of how much demand occurs. With regard to reparable items, peak policy may be applied in setting procurement level and setting repair levels. The activity threshold for reparables may be different from consumables. Several echelons of the supply chain can be analyzed.
- Logistics, Military Facilities and Supplies