Analysis of Proposed Stock Range Rules

The provisioning process at the Inventory Control Points of the various services are thought to be the source of much excess stock. The Department of Defense has recently issued policy on the range determination. The cost equation considers the costs to stock with no demand, to stock with demand, and to satisfy demand for non-stocked items. Alternate models are permitted if time-weighted requisitions short is a consideration in the model. The Navy in the recent past developed such a model. The study compares performance of the Navy model, the DOD model, and current rules used at a Navy Inventory Control Point. The Navy model was more cost-effective than the DOD model, but neither model attained the response time of current rules.