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A Top-Down Approach to Modeling US Navy Inventories

Author

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  • Everette S. Gardner

    (College of Business Administration, University of Houston, Houston, Texas 77004)

Abstract

For a military distribution system with a fixed investment budget, I developed trade-off curves between two aggregate variables: reordering work load and customer service. The curves showed that reallocating investment funds from safety stocks to cycle stocks would cut reordering work load by 20 percent, with no impact on customer service. Implementation of this idea yielded annual cost savings of $2 million.

Suggested Citation

  • Everette S. Gardner, 1987. "A Top-Down Approach to Modeling US Navy Inventories," Interfaces, INFORMS, vol. 17(4), pages 1-7, August.
    • Handle: RePEc:inm:orinte:v:17:y:1987:i:4:p:1-7
    DOI: 10.1287/inte.17.4.1
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