Dollar Cost Banding: A New Algorithm for Computing Inventory by Kenneth J. Girardini, Art Lackey, Kristin Leuschener, Daniel

By Kenneth J. Girardini, Art Lackey, Kristin Leuschener, Daniel A. Relles, Mark Totten

Describes the advance and implementation of greenback rate banding, a brand new set of rules for computing inventories maintained via military offer help actions.

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Additional resources for Dollar Cost Banding: A New Algorithm for Computing Inventory Levels for Army SSAs

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The customer requests two items but there is only one on the shelf) are counted as satisfied. While this is contrary to the Army definition and current metrics, it is done to maintain consistency with the earliest data used in the report and to track trends over time without definitional changes that could create discontinuities in the metrics. 1. , failure rates, OPTEMPO, and the availability of maintenance technicians to perform the required repairs) beyond what is stocked in the SSA can affect equipment readiness.

In this way, DCB reduces the risk of stock shortages and more effectively sets depth levels that are appropriate for customer demand and replenishment patterns. , the mean and variance), approaches that try to fit the lead time demands are often referred to as parametric approaches. Because DCB uses iterative simulation and does not rely on an assumed PDF, it can be called a nonparametric or distribution-free approach. Developing an Improved Inventory Algorithm 25 year for retention and two a year to be added), there would be very few demands to fit a distribution or estimate the parameters of a distribution.

Step 4: Convene ASL review board. In the next step, local supply managers review the recommendations generated in step 3. After the recommendations and supporting data have been disseminated to the stakeholders, an ASL review board is convened. In it, the stakeholders present their views on which items should be stocked in the ASL. The stakeholders include local supply managers, maintenance technicians, motor pool officers, and representatives of the operational commander. • Step 5: Implement new ROs.

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