Cost and Effectiveness Impacts of Order Quantity Changes

by James W. Houghten


Download eBook for Free

FormatFile SizeNotes
PDF file 1 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback40 pages $20.00 $16.00 20% Web Discount

A description of two methods for estimating the increased costs of setting a minimum reprocurement quantity of one year's worth of stock for Air Force Economic Order Quantity items whose annual issues are in the $1,000 to $10,000 category. One method requires that items be specified by their annual issue value; the other that they be specified both by annual demand rates and unit prices. Although more difficult and expensive to use, the second method is more accurate, particularly for items with low annual demand rates.

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.