An analysis of the Navy Stock Fund.
Abstract
Navy Stock Fund working capital reductions can be primarily attributed
to vastly expensive but largely inactive safety stock
maintained in a decentralized storage system. By tracing through a
statistical method for determining the most economical quantity of
safety stock to maintain, inefficiencies in attempting to provide
equally high availabilities for all items of stock at local activities
are pointed out that may well justify the working capital
reductions.