Date

1973

Document Type

Thesis

Degree

Master of Science

Department

Industrial Engineering

First Adviser

Whitehouse, Gary E.

Abstract

The functions of procurement, inventory control and warehousing are shown to be an integrated system which requires consideration of the costs of all the related functions in order to specify an policy which has a minimum total cost for a desired level of service. A stochastic environment is assumed in which a Poisson distrubuted demand is known and initially only an estimate of the average lead time is available for each vendor. An adaptive model is developed which specifies a policy using a dynamic programming algorithm and then simulates on year's activity utilizing the policy.

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