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Naval Research Logistics Quarterly | Vol.2, Issue.3 | | Pages 157-173

Naval Research Logistics Quarterly

A method for calculating optimal inventory levels and delivery time

T. M. Whitin J. W. T. Youngs  
Abstract

The following note is concerned with establishing an inventory control policy for items with extremely low demand. In the event that the expected savings in ordering cost that would result from buying in lots is less than the concomitant increase in carrying charges, it is uneconomical to use a lot size formula. In this event, it is appropriate to use a system consisting of placing orders as units are demanded.

Original Text (This is the original text for your reference.)

A method for calculating optimal inventory levels and delivery time

The following note is concerned with establishing an inventory control policy for items with extremely low demand. In the event that the expected savings in ordering cost that would result from buying in lots is less than the concomitant increase in carrying charges, it is uneconomical to use a lot size formula. In this event, it is appropriate to use a system consisting of placing orders as units are demanded.

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T. M. Whitin J. W. T. Youngs,.A method for calculating optimal inventory levels and delivery time. 2 (3),157-173.

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