VA Should Use Economic Order Quantity Principles in the Wholesale Supply System

摘要

Changes in wholesale supply operations at the Veterans Administration could reduce net ordering and carrying costs, inventory investment, and warehouse space. The primary vehicle for achieving these reductions is the economic order quantity principle--a mathematical method for determining the purchase quantity that will result in the lowest total cost to order and carry inventory. Additional reductions are possible by basing safety stock requirements on variations in customer demands and procurement leadtime requirements on actual experience.