Title: Cost comparison of policies for ordering large-calibre ammunition inventory using a Weibull deterioration function
Authors: Srinivas; Mrinalini Shah; Santanu Roy
Addresses: Institute of Management Technology, 201-001 Ghaziabad, India ' Institute of Management Technology, 201-001 Ghaziabad, India ' Institute of Management Technology, Dubai, UAE
Abstract: Large-calibre ammunition batches deteriorate at different rates depending on their storage and transportation history. The structure of ordering policy used for the management of such a mixed stockpile may affect its long-term utility. The present paper explores the dependence of inventory system costs on the structure of ammunition ordering policy by modelling two simple ordering policies and comparing their long-run average costs. While corrective ordering policy (COP) advocates order placement only on failure, preventive ordering policy (POP) causes orders to be placed at a predetermined age or on failure, whichever is earlier. The research reported here tested the sensitivity of the ordering policy models to changes in cost and deterioration parameters using a unique method for estimating stockpile deterioration parameters from inspection data. The research results provide a framework for the selection of optimal ordering policy for large-calibre ammunition and other non military items that deteriorate similarly.
Keywords: corrective ordering policy; COP; preventive ordering policy; POP; Weibull distribution; large-calibre ammunition batches; inventory management; mixed stockpiles; deterioration rates; ammunition ordering policy; inventory modelling; stockpile deterioration.
International Journal of Inventory Research, 2015 Vol.2 No.4, pp.305 - 324
Received: 15 Sep 2014
Accepted: 04 Nov 2015
Published online: 30 Dec 2015 *