An Empirical Analysis of a USAF Economic Order Quality Parameter.

Abstract : This thesis effort looked into some of the inventory policies involved in managing United States Air Force expendable supply items. The general theory that is used is the economic order quantity (EOQ) as used by the Air Force Logistics Command which is a modification of the Wilson Lot size formula. The primary policy issue which was addressed was the holding cost factor of the EOQ formula. To predict the results of policy changes, an inventory simulation model, Inventory System Simulator, was employed. This model took data from Oklahoma City Air Logistics Center files for the period of Fiscal Year 1971-1975 and projected total costs per year of the sampled items in procurement costs, carrying costs and backorders. Output from the model is displayed in tabular and graphical form. The effort resulted in an analysis of the general trends that can be expected when holding cost policy is changed. (Author)