A description of a computer program to calculate stock levels across a set of recoverable items which are generally characterized by high unit cost and low demand. The inventory policy followed is to reorder a unit whenever one is demanded. The assumed demand distribution is a stuttering Poisson while the distribution of response time is arbitrary, since only the mean response time needs to be known. The technique of Bayesian inference is used for demand prediction. Included with the program (written in FORTRAN IV) is a description of the structuring of the entire program, flow charts, a definition of the variables, and a listing of the source program.
This report is part of the RAND Corporation Research memorandum series. The Research Memorandum was a product of the RAND Corporation from 1948 to 1973 that represented working papers meant to report current results of RAND research to appropriate audiences.
Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.