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Optimized Logistics Program Based on Stocking Cost

IP.com Disclosure Number: IPCOM000078934D
Original Publication Date: 1973-Apr-01
Included in the Prior Art Database: 2005-Feb-26
Document File: 2 page(s) / 77K

Publishing Venue

IBM

Related People

Tuggle, JP: AUTHOR

Abstract

This program determines part stocking quantities, SQ, at six echelon stocking locations, EL, which yield optimum burden costs, BC; calculates BC of stocking plans where EL SQ are selected by user; and provides maintenance parts cost and initial procurement costs, PC, of parts by year. Its purpose is to aid the user in selecting a stock plan, through knowledge of the additional BC incurred when stocking is not cost optimum, and to provide stocking information for use in service costs estimates.

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Optimized Logistics Program Based on Stocking Cost

This program determines part stocking quantities, SQ, at six echelon stocking locations, EL, which yield optimum burden costs, BC; calculates BC of stocking plans where EL SQ are selected by user; and provides maintenance parts cost and initial procurement costs, PC, of parts by year. Its purpose is to aid the user in selecting a stock plan, through knowledge of the additional BC incurred when stocking is not cost optimum, and to provide stocking information for use in service costs estimates.

The program is shown in flow chart form to represent program control of input, calculations, and output. Directions for providing input data and changing program data is contained in the program. Procurement periods, PP, is a normal restock timed increment. If a part is not available at first EL site when needed, the program assumes that the part will be obtained on an emergency basis. The program further assumes that if EL is stocked, then every active site, AS, within EL for that PP contains at least one of the parts. Referring to the flow chart:
R1 and R2 Computes values for PP from input data for subsequent calculations.

R3 Computes expected demand, ED, of part of each PP. R4 Selects PP most representative of part average demand.

R5 Distributes SQ necessary to meet part ED at ninety-nine

percent confidence level over EL's minimizing BC for PP

selected by R4.

R6 Computes EL SQ for all PP based on PP ED and PP EL AS, and

E...