ELECTRONIC DATA PROCESSING CONTROL OF AIR FORCE SPARE PARTS INVENTORIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01043R001800180003-6
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 127
• Document Creation Date: December 23, 2016
• Document Release Date: March 15, 2013
• Sequence Number: 3
• Publication Date: November 14, 1957
• Content Type: MEMO

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RM-2013 November )A, 1957
RAND RESEARCH MEMORANDUM
ELECTRONIC DATA PROCESSING CONTROL OF
AIR FORCE SPARE PARTS INVENTORIES
Compiled by
S. L. Pollack
such as the Air Force is now seeking to develop.
of these functions in the context of an electronic data processing system
This Research Memorandum describes the functional steps that are required
to control Air Force inventories of spare parts. It explains the exercise
of-the-art of electronic data processing equipment (EDPE) has nov advanced
to a point where much of the work can be done automatically, according to
rules specified by management. This enables management to devote its full
attention to special reports and to those exceptions that cannot be handled
by electronic gear.
In any complex management system, much of a manager's ti tends to be oc-
cupied with digesting and interpreting a large volume of information; this
is certainly true for the present Air Force inventory system. The state-
All inventory control of spare parts involves five functions:
1. Input Data Control--data processing actions for de-
tecting and correcting errors in format and fact,
and for routing data to further processing.
2. Substitution and Allocation--the data processing ac-
tions required to execute the distribution policies
for spare parts that have substitute and interchange
relationships.
3. Transaction Posting and Management Review--the data
processing actions required to maintain records re-
flecting the current inventory position.
I+. Due-In--the maintaining of records reflecting the
status of materiel on order from activities outside
the particular system.
5. Shipment Control--the monitoring of records reflect-
ing the status of materiel being transported to or
from activities within the system.
These functions relate to the control of spare parts inventories, a sub-
system of logistics management. Other logistics management functions, e.g.,
requirements calculations and master repair scheduling, are not directly
-74 E-I1 I I Des=fa
1700 Maln S. ? Sonia Monica ? California
STAT
STAT
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part of the data-processing system for inventory control. They furnish
inputs for the inventory control system, and in turn use its outputs.
The functions discussed in this Research Memorandum form a necessary part
of any system of Air Force inventory control, regardless of whether EDPE
is employed in the system. The potential improvements resulting from the
use of EDPE are, nevertheless, very large. The nature of these improve-
ments is in the increased accuracy, timeliness, and completeness of re-
sults, and in the increased opportunity to consider all pertinent informa-
tion for each decision. The greatly increased ability to exploit fully
the substitute relationships which exist in the inventory is one of the
major potential improvements. Long recognized by the Air Force) this
problem could not be met satisfactorily by non-EDP techniques. As de-
scribed, the use of EDPE will enable the inventory control manager to ex-
ploit these relationships efficiently.
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STAT
U. S. AIR FORCE
PROJECT RAND
RESEARCH MEMORANDUM
ELECTRONIC DATA PROCESSING CONTROL OF
AIR FORCE SPARE PARTS INVENTORIES
Compiled by S. L. Pollack
RM-2013
ASTIR Document Number AD 144298
14 November 1957
Assigned to
THIS C::?PY S1,109! .D NOT BE DESTROYED
RETURN TO OC LiE-;: A RY AFTER IT HAS
SERVED ITS PURPOSE.
This is a working paper. It may be expanded, modified, or with-
drawn at any time. The views, conclusions, and recommendations
-expressed herein do not necessarily reflect the official views or
policies of the United States Air Force.
.74 R~ n Dom.,
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SUMMARY
This Research Memorandum describes the functional steps that are
required to control Air Force inventories of spare parts. It explains
the exercise of these functions in the context of an electronic data
processing system, such as the Air Force seeks to develop. The study
illustrates ways and means of applying electronic data processing equip-
ment (EDPE).to Air Force inventory control.
In any complex management system,much of a manager's time tends to
be occupied with digesting and interpreting a large volume of information;
this is certainly true for the present Air Force inventory system. The
state-of-the-art of EDPE has now advanced to a point where much of the
work can be done automatically according to rules specified by manage-
ment. This enables management to devote its full attention to special reports
and to those exceptions that cannot be handled by the EDPE.
All inventory control of spare parts involves the following five
functions:
1. Input Data Control -- the data processing actions for detecting
and correcting errors in format and fact, and for routing data to further
processing.
2. Substitution and Allocation -- the data processing actions required
to execute the distribution policies for spare parts that have substitute
and interchange relationships.
3. Transaction Posting and Management Review -- the data processing
actions required to maintain records reflecting the current inventory
position.
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4. Due-In -- the maintaining of records reflecting the status of
materiel on order from activities outside the particular system.
5. Shipment Control -- the monitoring of records reflecting the
status of materiel being transported to or from activities within the
system.
These functions form a necessary part of any system of Air. Force
inventory control, regardless of whether EDPE is employed in the system.
The potential improvements resulting from the use of EDPE are, neverthe-
less, very large. The .nature of these improvements is in the increased
accuracy, timeliness, and completeness of results, and in the increased
opportunity to consider all pertinent information for each decision. The
greatly increased ability to exploit fully the substitute relationships
which exist in the inventory is one of the major potential improvements.
Long recognized by the Air Force, this problem could not be met satis-
factorily by non-EDP techniques. As described in this paper, the use of
EDPE will enable the inventory control manager to exploit these relation-
ships efficiently.
A RAND study of B-~47 airframe parts, primarily Category I, has shown
that groupings of parts based on interchangeability rather than the in-
dividual part number, should be the basic unit in demand analysis and fore-
casting.1 In accordance with this conclusion and stated Air Force policy
proper development of the Substitution and Allocation (S&A) function is
necessary. Management of the spare parts inventory will be significantly
more efficient when it is based on the relationships developed for the S&A
1
T. A. Goldman, Relationships between Program Elements and System
Demand for Airframe are karts, a orpora on, esearc emorandum
RM-1 5 , 22 January 1957.
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Many other new management policies that have been proposed to and
by the Air Force could not be implemented because of lack of adequate data
processing facilities. With the ability to get timely and accurate data
by means of EDP, these proposed policies, after a proper test, could be
implemented by the Air Force.
Project ELECTRO LOGS, the objectives of which have been described
in a previous Research Memorandum,2 represents the EDPE application of
many of these fundamental ideas to the B-52/KC-135 weapon system package
on behalf of the Weapon System Manager at the Oklahoma City Air Materiel
Area (OCAMA). This project provides many of the examples of the functions
described in this paper.
EDPE, by virtue of its purpose of handling large masses of data, is
the focal point for data from and to various sources. The term "data
processing center" (DPC) is applied to the EDPE and the attendant organi-
zation that accomplish the data processing function for a multi-point
inventory system. A DPC may exist at a base where the EDPE processes
data from such sources as Maintenance, Supply, and Operations; or it may
exist in a weapon system complex where the EDPE processes data from such
sources as bases and storage sites. Whatever the level of the DPC, the
changeover from decentralization of data processing to centralization
implies a significant change in supply procedures for the organizations
involved. -
Whereas the examples for the various functions of an EDP system for
Air Force inventory management pertain mostly to a weapon system comprising
2M. A. Geisler, J. A. Postley, Research and Development of New Data-
Processing S stem for Air Force Logistics, The RAND Corporation, Research
Memorandum RM-1 39-l, 13 June 1956.
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storage sites and bases, it should be clear that the principles discussed
in this paper apply to property class management and to higher and lower
level management systems as well. For example, for those bases which have
an inventory management problem of sufficient complexity and volume to
require EDPE, this paper can serve as a guide for developing a_suitable EDP
system.
The speed and accuracy of the input-output for EDP should be consistent
with the scope of its goal, inventory management, and the equipment that is
used. EDP has a very definite need for high accuracy and rigid format con-
trol for the input-output data. To this end, an EDP system should have
a data specialist with appropriate responsibility and authority stationed
at data generation, file maintenance, and data communication organizations
in the system. Also, it will probably be necessary in the future to require
that the manufacturers of aircraft spare parts (at least the large ones)
collect data for new parts specifically for EDP applications.
The characteristics of input data control by manual, electric accounting
Machine (EAM) and EDPE means are described. Evaluation of the characteristics
leads to two conclusions: 1) in an EDP system, input data control by EDPE
supplemented by manual checking of some errors is necessary in view of its
superiority over manual or EAM input data control, and 2) supply management
should assign the function of input control to the EDP manager. The need
for input and output data controls, as well as extensive operational checkout
of the EDP system, cannot be over-emphasized.
Contrary to the widely held belief that vast improvements in Air Force
communications are needed to match the speed of EDPE, this paper concludes
that the transceiver and private teletypewriter networks, which are under
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expansion, supplemented by telephone facilities and postal service, appear
to be generally adequate for present-day EDP systems. Little can be said
about the long range data processing communication needs since they depend
on future EDP developments.
Since the procedures for executing the functions of an EDP system and
the EDP equipment employed in the system are closely interdependent, care-
ful consideration must be given to both at all stages of the system develop-
ment. Procedures that are planned without due regard for EDPE characteristics
may require EDPE that is expensive and/or inefficient with respect to the
logistic objectives of the system. EDP equipment that is selected without
proper consideration of the system functions is likely to hinder rather
than help the performance of those functions.
This paper is intended for management people who have responsibility
for the control of spare parts inventories. In addition, it should be
profitable for appropriate specialists, such as statistical services,
supply, and systems development personnel, to study those chapters of the
paper dealing with their particular responsibilities.
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of The RAND Corporation under the direct supervision of John A. Postley.
Two of the authors, Howard Trescott and James Crupper, were assigned
to RAND from the Oklahoma City Air Materiel Area (OCAMA) to. provide
Air Force logistics knowledge. In addition, since the beginning of the
study in the summer of 1955, close liaison was maintained between the
study group and the staff of the Logistics Data Processing Development
Office (LDPDO) at OCAMA. The contributions of the LDPDO staff to the study
were significant. In turn, the principles set forth in this paper have
guided the OCAMA LDPDO in its creation of an EDPS for the management of
the B-52/KC-135 spare parts inventory.
The development of an Electronic Data Processing System (EDPS) for the
control of complex Air Force inventories requires a combination of skills
in digital computer engineering, systems analysis, digital computer pro-
gramming, economic and mathematical analysis, and Air Force logistics
knowledge. The authors of the several studies which are reported on
in this paper -- Arnold Anex, James Crupper, Anthony J. Dowkont, Leon
Gainen, Raymond J. Mason, and Howard Trescott -- have sought to provide
this combination. The studies were carried out in the Logistics Department
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Page No.
ix
CHAPTER I -- The Concept of Electronic Data Processing
A.
Introduction
1
B.
Description of Inventory Control .
2
1.
Inventory Record-Keeping
3
2.
Inventory Management .
3
C.
Objectives of Introducing EDP
4
D.
EDPE Highlights
5
E.
Inventory Control Functions of an EDP System
7
A.
Introduction
9
B.
EDP Input Data .
9
1.
Generation
10
2.
Format and Coding .
11
3.
Communication
12
C.
Input Data Control Function
13
1.
Error Detection and Correction
13
2.
Rearrangement of Input Information
20
3.
Classification of Input Data
21
D.
Evaluation of Manual, EAM, and EDP Input Data Control
24
1.
Manual Input Data Control .
24
2.
EAM Input Data Control .
24
3.
EDP Input Data Control..
25
4.
Input Data Control Responsibility .
26
E.
File
Data
26
1.
Description
26
2.
Collection of Initial File Data
27
3.
File Maintenance
28
F.
Output Data
29
CHAPTER III -- Substitution and Allocation Function for Air Force
Inventory Control
A.
Introduction
31
B.
Substitution and Allocation (S&A) Procedures
33
1.
Definition of Terms
33
2.
The Use of Management Levels and Priority Ratings .
38
3.
Required Substitutes
41
4.
Disallowance of Substitutes
42
5.
Filling Requests With More Than One Part
43
6. Routine Replenishment .
44
7. Notices to Management .
45
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Contents (cont.)
Page No.
0. Data Requirements for S&A Procedures 46
1. Substitute Relationships and Their Limitations 46
2. Management Levels for Parts and Subfamilies 48
D. The B-52/KC-135 S&A Procedure, An Example . 48
1. Maintenance of System Balances a 49
2. Description of Family Record . 50
3. Posting of Transactions 52
4. Processing of Requests 53
5. Deletions and Exceptions . 57
CHAPTER IV -- Transaction Posting and Management Review
A. Introduction 59
B. Main Balance File Data . 61
1. 'Fixed Indicative Data . .. 61
2. System Summary Data 63
3. Location Data 67
C. Main Balance Processing 68
1. Types of Transactions . 70
a. Change-Balance Transactions . 70
b. Change-File Transactions . 74
2. Main Balance Outputs . 77
3. Shipping Orders 84
CHAPTER V -- The Due-In Function
A. Introduction 87
B. Purpose and Need for Due-In Records 89
C. Due-In Sub-Functions 90
1. Recording Original Requirements Schedules . 90
2. Processing Transactions Affecting Original
Requirement Schedules . 91
3. Preparation of Reports for Management . 92
CHAPTER VI -- The Shipment Control Function
A. Introduction 97
B. Purpose and Need for Shipment Control . 97
1. Control of Three Classes of Shipments . 99
2. Accumulation of Analysis Data . 101
C. Shipment Control Sub-Functions . 102
1. Recording the Shipment Data 102
2. Notification of Receipts . 104
3. Non-Compliance or Reversal Information 104
4. File Monitoring 105
5. Preparation of Reports for Management . 105
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Contents (cont.)
Page No.
CONCLUDING NOTE
109
REFERENCES
111
Figures
Figure 1
-- Logical Block Diagram of Input Data Control
14
Figure 2
-- Logical Block Diagram of the Substitution and
Allocation Function
32
Figure 3
-- Logical Block Diagram of the Main Balance Function
60
Figure 4 -- Logical Block Diagram of the Due-In Function .
88
Figure 5 -- Logical Block Diagram of the Shipment Control Function
98
Table's
Table 1 -- Examples of Possible Transactions to be Reported to DPC
15
Table 2 - Example of a Record for an EDP Master File .
18
Table 3 -- Example of a Consolidated Inventory Record for an EDP
Balance File
62
Table 4 -- Possible Items for a Shipment Control Master File .
103
Appendices
Appendix I -- Distribution, Short Supply, and Backorder Policies
113
Appendix II -- General Procedure for Handling Requests
115
Appendix III -- Family Record for the B-52/KC-135 Weapon System
117
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Chapter I
THE CONCEPT OF ELECTRONIC DATA PROCESSING
A. Introduction
Management of Air Force spare parts inventories has proven to be a
complex of many jobs. The use of EDP equipment for this purpose can enable
management to concentrate on the important job of dealing with non-routine
situations.
This paper contains a discussion of the major functions which should
be carried out in order to control Air Force inventories with EDP equipment
and techniques, regardless of the management system (e.g., weapon system or
commodity management) or the organizational level (e.g., base or depot) and
almost without regard to the size of inventory or the volume of activity.
The functions are discussed in a moderate amount of detail. Examples are
presented in terms of large scale EDPE although most of the functions des-
cribed can be performed with medium or small scale equipment typically
found at smaller installations and need be done on large scale equipment
only to the extent that complexity and volume require.
The following chapters deal with inventory control of spare parts
comprising some subsystem (called simply the ttsystemtt) of the total Air
Force spare parts inventory complex. This system may comprise spare parts
under the control of a property class manager, a commodity manager, a
weapon system manager, or a base supply officer. The spare parts may be at a
single location such as a depot, at a complex of locations such as a group
of weapon system storage sites, or perhaps at Air Force bases stocking parts
for the weapon system. Whenever a portion of the data processing operations
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occurs at a single point for stocks located at one or more geographical
points, that portion of the operation is said to be ttcentralized,tt and the
data processing point is referred to as the Data Processing Center (DPC).
While it is clear that certain data processing activities must be
carried out at the stockage locations to supplement the DPC activities in
a multi-point system, this paper discusses the functions in terms of the
It is well to stress that this paper does not present a system for
EDP control of Air Force spare parts inventories. It is rather an attempt
to describe the functions that must be considered in developing such a
system. The examples given illustrate these functions and are not neces-
sarily representative of a preferred system.
References pertaining to the design and implementation of an EDPS are
given at the end of the paper.
B. Description of Inventory Control
Inventory control encompasses maintaining records of spare parts in-
ventories and positioning those spares in such a way as best to meet the
needs of potential users. Serviceable inventory is accumulated by buying
from commercial contractors, transferring from other government inventories,
or repairing reparables already in the inventory. The users may be flight
line mechanics, spare parts repair facilities, or major aircraft overhaul
lines.
The fundamental purpose of the data processing system is to carry out,
as precisely as possible, the inventory policies established by management.
To this end, a file of-information is established reflecting facts pertinent
to the character of the inventory, that is, catalog data such as stock number,
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unit price, and unit pack. Other basic information pertains to the quantity
of each item in the inventory and is liable to change as a result of the day-
to-day activity. Relevant transactions are processed against this infor-
mation according to the inventory policy established by management. The use
of EDPE for this purpose suggests that the information file be automatically
accessible to the machine and that the processing be carried out by an
electronic computer system. This process may be thought of as consisting
of two parts: 1) inventory record-keeping and 2) inventory management
based on these records. It is useful to consider the objectives of these
two parts separately.
1. Inventory Record-Keeping
Inventory record-keeping involves the establishment of records reflect-
ing the inventory position of the spare parts for which the "systemtt is
responsible. In order to reflect the true inventory position, the records
must be accurate and timely.
An important objective of introducing EDPE into the record-keeping
operation is to displace manual and electric accounting machines (EAM)
record-keeping which has proven to be inadequate for the volume of work
encountered and the timeliness and accuracy required. Manual and EAM
methods often fail completely to provide all the pertinent information
about an item of inventory which is needed in the management process des-
cribed below. The essence of EDP control of Air Force inventories is to
avoid the failures of decision-making for lack of all facts pertinent to
the decision.
2. Inventory Management
Management of inventories is that portion of inventory control relating
to decision-making. In non-EDP systems this decision-making is typically
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carried out at all operating levels by people who deal with data of one
kind or another. While certain important decisions are made by such top-
level people as the director of supply, the weapons system manager, the
property class manager, and their immediate staffs, certain other (some-
times equally) crucial decisions are made by clerks with limited experience
and knowledge in Air Force logistics. There are two problems here: 1)
decisions are often made without consideration of all of the pertinent
data and 2) decisions, especially at the lower decision-making levels,
often are not in exact accordance with-the policies established to cover
the situations.
C. Objectives of Introducing EDP
By introducing EDP techniques, dual objectives - decision-making
based on all relevant data and decision-making in strict accordance with
the rules - can be achieved. The latter is accomplished simply by "mech-
anizing" those decisions which can be made properly by mere reference to
the data at hand - usually those decisions made at the lower decisinn-making
levels. The computer always adheres to the rules by which it is programmed.
There remain, however, those decisions which must be made by management,
usually at the higher decision levels.
In the case of both the mechanized and the non-mechanized decisions,
the EDPE plays a key role in making the proper data available at the decision
point. The computer can be programmed in such a way that it refers auto-
matically to the relevant data in its memory. At this point the computer
itself either makes the decision ("solves the formula") or performs the
functions of seeking, obtaining, and making available to the human decision-
maker all of the accessible information he needs to make the decision.'
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It is highly desirable to assign as many of the so-called "routine" decisions
as possible to the computer. The machine can be counted on to interpret the
decision rule exactly as programmed whereas people cannot. Situations in
which it is more desirable for people to make decisions are: those where
the data or knowledge for the decision are not accessible to the computer,
those which are so rare as not to warrant interpretation in computer lang-
uage, and other exceptions which are identified as such by the computer.
In the interest of efficient data processing practice it is essential that
non-automatic decision-making be limited to a very small percentage of the
transactions introduced into the system.
D. EDPE Highlights
A few remarks about EDPE seem in order. There are three fundamental
parts to the hardware: 1) input/output, 2) storage (memory), and 3) com-
puter (processor). The input section usually consists of several units,
such as punched card and punched tape readers, which enter coded information
pertaining to operating data and the specified mode of operatinn into the
system. Upon extracting information from the EDP system, the output section
employs such units as.printers and card perforators to record results of
actions by the EDP system. The storage units are magnetic or electronic
devices which store information in "computer language" so that the rest of
the system can gain automatic access to it - much like a file clerk would
operate in a non-mechanized system. The data so stored are termed "file
data." The computer is a device which does the following: 1) makes "yes"
or "nott type decisions, based on the data, by means of electronic switches,
2) carries out numerical operations electronically, in the manner of the
familiar desk calculator, and 3) controls the sequence-of operations performed
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according to pre-specified instructions (the ttprogramtt) subject to alter-
ation on the basis of decisions related to the data encounterd.
The system used for storing file information used for decisions in
EDPE is of import. There are two major systems: 1) serial access and
2) random access.
Serial access equipment is equipment that requires information to be
stored in some alphabetical or numerical sequence corresponding to stock
number or other description. Magnetic tapes are typically used for this
kind of storage. The total storage space required in the magnetic tape
itself corresponds directly to the size of the file; however, the total
hardware required to make that information serially available to the data
processor is a function of EDPE considerations and not of file size. The
entire file is likely to involve many magnetic tapes filled with information.
The true ttserialness", of the file is thus limited to each tape while the
selection of a particular tape is not dictated by this same serial feature.
Random access equipment is equipment that enables information to be
made available to the data processor in a sequence unrelated to any in
which it must be filed. This fact creates an indexing problem, defined as
the problem of placing the location in which the information is filed in
one-to-one correspondence to the ttkeytt (e.g., stock number) by which it is
identified. In contrast to the serial situation the size of the file cor-
responds directly to the amount of information which must be stored. Hence,
the cost of storage increases at the same rate as the size of the file.
The main advantage of a random access file over a serial one is that the
hardware need refer only to the information actually wanted for a particular
operation and need not--refer to the information (often voluminous) not required
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at this time; the disadvantages include decreased reference rate for large
volumes of references and increased cost.1
Operating as a single logical unit this equipment can receive and
present information in large volume, sort data in vast quantities, and
operate at prodigious rates. A typical large scale configuration of this
kind of equipment might represent a capital investment well in excess of
$1,000,000 or a corresponding rental commitment. Such a major financial
obligation can be justified only by the expectation that one or more of
the advantages of better data processing, reduced personnel requirements,
and lower overall costs of the job will be achieved. It is not unlikely
that all three objectives can be achieved.
E. Inventory Control Functions of an EDP System
The chapters that follow describe the functions of inventory control
-in terms of five major subdivisions:
1. Data flow and EDP input data control -- the movement of data to
the EDPE, and the data processing actions required to detect errors in
format and fact and to enable the data to be properly routed and processed
by the EDPE program.
2. Substitution--and allocation -- the data processing actions required
to execute the distribution policies for spare parts that have substitute
and interchange relationships.
3. Transaction posting and management review -- the data processing
actions required to maintain records reflecting the current inventory
position.
For a further discussion see J. A. Postley, File Reference, The RAND
Corporation, Paper P-691, 11 September 1955?
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4. Due-in -- the data processing actions required to maintain records
reflecting the status of materiel on order from activities outside the
particular system.
5. Shipment control -- the data processing actions required to main-
tain records reflecting the status of materiel being transported to or
from any activity of the system.
All of the fundamental eubfunctions arising in the control of Air
Force spare parts inventories are discussed in this paper. This paper
is intended to assist middle and top management people concerned with the
problem of specifying those functions which must be dealt with whenever
EDPE is employed in Air Force inventory control.
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Chapter II
DATA FLOW AND INPUT DATA CONTROL
This chapter describes the fundamental characteristics and the generation,
format and coding, and communication of EDP input data. It also discusses
EDPE file data and output data.
B. EDP Input Data
The enormous processing capabilities of EDP demand high speed input
techniques, e.g., magnetic tape, punched cards, or paper tape. Without
such techniques much of the potential value of EDPE is lost. It would be
nonsense, for example, to consider a manual keyboard entry into EDPE of
several thousand transactions per day. Entry time would be of the order
of 15 seconds or more per transaction, whereas net computing time might
be on the order of 0.1 seconds per transaction; the result would be a
costly waste of computing facilities. Therefore, efforts should be made
to generate EDP input data in a machine-readable state. If input data
are not converted into such a form, the subsequent manual handling and
transcriptions become costly and tend to introduce errors into the data.
The necessity for promoting accurate data and data flow will be dis-
cussed further in the section on the Input Data Control function. Rigid
format controls are required since the relative location of data within a
record or transaction is significant in terms of what the data represent
or mean. An example is the "quantity requested" field (an aggregate of
alpha-numeric characters) on a requisition. On a manually prepared form
the exact location of the quantity digits is unimportant; if a quantity
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of 123 is being requested, "123tt is written or typed in anywhere in the
"quantity requested" column of a requisition, e.g., Air Force Form 104B.
In contrast, a punched card requisition for EDP, e.g., Air Force Form
104P-1, must have the "123" digits punched in a specific location on the
card for correct interpretation by the computer. Further, if there are
six digits allowed for quantity, t11231t would probably be entered as
tt000123.tt Any deviation from format rules would result in an error.
For the above reasons, an EDP system should have DPC representatives
stationed at data generation and data communication points throughout the
system. These representatives must assume the primary responsibility for
accurate data flows to the Data Processing Center (DPC) and must promote
a system (as opposed to location) attitude. Error correction, advice on
data generation, and coordination of duplicate balance records are specific
examples of what a DPC monitor might do. Such a person with EDP experience
and orientation would be especially useful at Air Force bases where little,
if any, EDP knowledge exists.
Logistics data for EDP can be considered as being either operational
data, e.g., issues reported by bases, or management information, e.g.,
changes in allocation levels. All logistics data prepared for input into
EDPE are defined as transactions. In the balance of this section "input
data" and "transactions" are used interchangeably.
1. Generation
Because there are significant differences in base procedures, base
processing capabilities, and base mechanization programs, many problems
in transaction generation need to be solved. Whereas today the bases
maintain their own accounting records (serviceables, reparables, issues, etc.),
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under centralized data processing the DPC will assume a major share of the
responsibility. This means that for a centralized EDP system a base must
generate transactions that report a major portion of base supply activity
either as a separate procedure over and above existing procedures or as a
by-product of what probably would have to be an entirely new base supply
system. For both mechanized and unmechanized bases EDP results in a
significant departure from its present supply actions. This is not an
easy task; peculiarities of base size (in terms of supply activity),
organization, and command complicate efforts to get uniform transaction
reporting from all bases.
2. Format and Coding
The format and the coding structure of transactions are important,
but not necessarily crucial, considerations. A transaction code is a set
of symbols (numeric and/or alphabetic) that denote the type of logistics
activity being reported; for example, the symbol tt6c" might be used to
indicate that an off-base receipt is being reported, and tt2btt might denote
the issue of a part to a using unit. The use of these codes must be con-
sistent and accurate. An important coding advantage of EDP over most
electric accounting machine (EAM) processing is that a code, once assigned
in EDP for the system, is standard throughout the processing whereas the
code may change from one stage of EAM processing to another. The format
of a transaction is the ordering of groups or fields of data. For example,
on a transaction reporting an issue the first 19 characters might be the
stock number, the next-6 characters the quantity issued, the next 2 an
abbreviation of the unit of issue, and so on. Once again, accuracy and
consistency are of prime importance; the actual format configuration or
field ordering is of lesser import.
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3. Communication
There are many methods available for transmitting transactions to and
from the DPC. Punched card transceivers, teletype, paper tape-to-tape,
magnetic tape-to-tape, facsimile, and voice telephone are examples of
electrical techniques; mail and courier-type services are non-electrical
methods. The choice of a particular communication system depends upon
many factors -- speed, volume, accuracy, cost, availability, etc. Of these,
the only universally required EDP characteristic is accuracy; speed in it-
self does not matter, but depends on the time value function of the data.
Other questions need to be answered. For example, should logistics
data processing communications requirements be met with an Air Force-wide
common user net, or should they be handled by a private network? Further,
if a separate logistics net is considered desirable, should all logistics
data be transmitted by it, or should Supply, Transportation, etc. have their
own nets if volume permits?
AMC today has a private wire transceiver network and a private tele-
typewriter network, both under expansion. Commercial telephone facilities
and the postal service are also used for logistics communications. For
short-range EDP projects, these facilities (or their expanded versions)
appear to be generally adequate. The priority transactions which require
immediate communication in the B-52/KC-135 W3apon System at OCAMA are at
present only about 250 per day out of a total of about 3000. Little can
be said about the long-range picture since the future data communication
needs are largely unknown.
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1
C. Input Data Control Function
The DPC has to perform its Input Data Control function during each
processing cycle of the EDPE;2'i.e., during each set of actions that are
performed on a specified group of transactions. The three major subfunctions
of Input Data Control are: 1) error detection and correction, 2) rearrange-
ment of input data, and 3) classification of input data. The primary pur-
pose of the first is obvious; the second and third are for EDPE processing
convenience. The Input Data Control function may either be performed as
a distinct operation for certain EDP systems or it may be performed in
conjunction with other functions.
1. Error Detection and Correction
From an EDPE procedural point of view, input data errors fall into
two broad classes: 1) those errors that are directly related to the
Air Force stock number and 2) those that are independent of the stock
number. An example of the former is an improper unit of issue for a
given stock number, and an example of the latter is an incorrect base
stock record account number. The discussion that follows applies to these
two classes of error.
There are two possible courses of action when an error has been de-
tected by the computer: 1) the computer may correct the error and continue
processing or 2) the computer may reject the transaction containing the
error and go on to processing the succeeding transactions.3 Some of the
1See Figure 1 for logical block diagram.
2See Table 1 for examples of the possible kinds of transactions to be
processed by the DPC.
3See Paragraph 2a, Section 2, Volume III Air Force Manual 67-1-
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Reject
transaction
Index and catalog
information
addition
Management Yes Print for manual
control
required ? processing
Transactions
Referencing to
other functions
Main balance Other functions
Substitution and
allocation
functions
Fig. I-Logical block diagram of input data control
Reject
batch
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factors that need to be considered for determining which of these two
actions will be taken for a particular kind of error are: 1) frequency
of occurrence, 2) computer storage capacity, and 3) relative importance
of the transaction involved.
EXAMPLES OF POSSIBLE TRANSACTIONS TO BE REPORTED TO A DPC
From DPC Controlled Activities
Turn-ins from using organizations (e.g., serviceable return)
Receipts from depots and WSSS's (e.g., automatic resupply)
Inventory adjustments
Issues to using organizations (e.g., maintenance squadrons)
Shipments to depots (e.g., reparables to Parts Repair Depot)
Inventory adjustments
Between condition balances (e.g., serviceable to reparable)
Between ownership accounts
Requisitions
Follow-ups on requisitions
Consumption data (e.g., condemnations of turn-ins)
Stock List Changes
Additions- e.g.,
new items)
Deletions
e.g.,
obsolete items)
Revisions
e.g.,
change in unit price)
Contract Information
Due-in schedule and changes
Shipment control data
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In the error detection and correction subfunction two kinds of checks
are made: one is related only to the information on a single transaction;
the other is concerned with the completeness of a group or batch of trans-
actions.
a. Transaction Checks
Several methods of checking are employed for each transaction.
Perhaps the simplest of these is the test for the presence of certain
fields, depending on the type of transaction being processed. This is
essentially a format or completeness check and is done in order to insure
that each transaction has the minimum required amount of information in
it; as such, it is a quantitative and not a qualitative type of check.
When checking. for the presence of a field, it may be possible to
check also for the type of characters which should be in that particular
field. For example, a quantity field must be composed of numeric characters;
if alphabetic characters are present, the entry is in error. The reasons
for doing this are manifold: for instance, if a non-numeric entry (e.g.,
"BEAtt instead of 11251") for quantity on a requisition were processed, a
request for an erroneous quantity might be filled, or a meaningless shipping
directive on a Weapon System Storage Site (WSSS) for a quantity of "BEAtt
might be written.
Another check would be to make certain a field, such as a transaction
code, is valid. This is done by comparing the transaction code field
against a table of all such valid code configurations. The transaction
code is very important since it identifies the type of transaction and the
DPC action to be taken on it. If the code is in error, incorrect processing
may occur, or even worse, a machine program or file record in memory may be
ruined and remain undetected for some period of time.
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Still another example might be a range test used to ascertain whether
or not a given figure is within known valid limits -- since the present
Air Force priority field on a requisition must be a number which ranges
from one through sixteen, a priority outside this established range means
that the requisition should not be processed.
A final example is the checking of stock numbers. A master file is
maintained by stock number and contains among other things the current
stock number of an item and the stock numbers it may have replaced.4 Thus
if a stock number shown in a transaction is not in the master file, it is
rejected as an error. If it is an ttoldtt stock number, the master file in-
dicates the "newts stock number and allows the transaction to be processed.
In addition, a notice is sent to the originating activity reminding it of
the stock number change.
b. Batch Control
Between the point where a group of transactions was generated
(e.g., at an Air Force base) and the processing of this batch of transactions
at the DPC, a transaction may have been lost or a foreign transaction may
have been picked up. Batch controls are used to preserve the desired com-
pleteness of each batch; the more important controls consist of: 1) a
transaction count;--2) a control total, 3) serial numbering of the trans-
actions, and 4) the restricting of each batch to one source organization.
The simplest of the batch controls is the restriction of batching by
source organization,- an almost natural follow-on in any logistics system.
A case in point might occur with the individual batching of transactions
by an Air Force base and their separate transmission to a DPC; these
4See Table 2. Items 2 and 4 are the stock number that has been replaced
and the ttnewtt stock number, respectively.
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Table 2
EXAMPLE OF A RECORD FOR AN EDP MASTER FILE
m No
It
Description
Number of
Characters
.
e
1.
Ownership Account Number
1
2.
Stock Number
19
3.
Family and Subfamily Number
6
4.
Stock Number (change to)
19
5.
New Family and Subfamily Number
6
6.
Unit of Issue
2
7.
Unit Cost
8
8.
Cost Category
1
9.
Common or Peculiar Item Code
1
10.
Dated Item Code
1
11.
Procurement Source Code
1
12.
Regulated Item Code
1
13.
Special Shipping Order Instruction Code
a. Handling Code
b. Freight Class Code
1
14.
Maximum Allowable Quantity
4
15?
Suspended Action Code
1
16.
Stock List Change Authority
6
17.
Date of Last Demand
4
18.
Action Code
1
a. Good Serial Number
b. Change to New Serial Number
c. Local Purchase
d. Local Manufacture
e. Obsolete
f. Consolidate with
g. Broken down into
h. Class 27 (USAF Excess)
83
transactions would not be commingled with those of another base for trans-
mission to the DPC. Thus, the DPC is able to check each transaction in
a batch for source organization consistency by ascertaining that every
card in the batch has the same organizational identification number.
An only slightly more complex batch control is the transaction count.
When a group of transactions are prepared for transmission to the DPC, they
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are counted, and this count information is then incorporated with the
batch for forwarding. A recount is made at the DPC and is compared to
the original figure made by the originating organization.
A more elaborate instance of batch control is to add up a given numeric
field (or portion thereof) on each transaction in a particular batch prior
to its transmission. The same total is taken again at the DPC and compared
with the total arrived at by the sending activity. This control, or "hash
total," is not significant and is used primarily to detect electrical
transmission garbles, particularly when the information is transmitted by
teletype.
A powerful but cumbersome control is the serial numbering of each
transaction in a batch just before transmission. Upon receipt of such a
batch at the DPC, a sequence check of this serial control number is made;
this sequence check will detect, for example, missing transactions, dup-
licate transactions, etc. The drawbacks in the use of such a control-are
the burden of preparation by the originating organization and the use of
potentially valuable logistics information space in these transactions.
With certain EDPE it is possible to check each transaction.in a batch
and to perform the batch control checks on the entire batch before the trans-
actions proceed to the next operation or function. This permits the rejection
of an entire batch of transactions which may be suspect, even though some
of the individual transactions appear to be correct.
Batch controls are necessary to insure that complete, correct -trans-
mission of transactions takes place. Centralized inventory record keeping
demands that all transactions affecting centralized records be received
by the DPC. The omission of transactions or the inclusion of foreign
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transactions results in erroneous centralized records and impairs the
supply effectiveness of the logistics system. If, for example, a receipt
transaction reported by a WSSS were lost, one consequence would be that
the filling of requisitions would be needlessly postponed.
c. Rejection of Errors
When errors in individual transactions and batch errors are
detected, the problem arises of rejecting either a single transaction or
an entire batch of transactions. For example, if an error in transaction
code were found, the transaction would have to be rejected, since the action
to be taken would be unknown. If, however, an error in the date (e.g., six
months ago) were detected, it would not be obvious whether to accept or
reject the transaction; the error might be ono of preparation or possibly
this transaction was reported six months ago and is now being re-sent by
mistake. Similarly, when the number of transactions received in a batch does
not agree with the control count accompanying the batch, the acceptance or
rejection of the entire batch is a debatable question. Rigid rejection
criteria must be selected; these criteria depend largely on the nature of
the logistics system (or subsystem) being developed.
d. Machine Peculiar Checks
In most,. if not all, EDP systems, checks have to be made which are
peculiar only to the equipment itself. Such checks, if not made, can result,
for example, in the garbling of a main balance record. An example of this
type of check is the screening of EDPE input data for misplaced EDPE control
characters used during processing.
2. Rearrangement of Input Information
The rearrangement of input information in a form convenient for EDP
machine processing is a subfunction of Input Data Control. The DPC, for
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example, may accept punched card requisitions on existing Air Force forms.
The arrangement of data on such forms may not be the same as that for
other transactions or for master file records. In order to facilitate
processing, the key information, e.g., Air Force stock number and trans-
action code, is rearranged so as to be common for all transactions. Gen-
erally speaking this function permits varied data formats, when desirable,
in input, file and output records and yet preserves processing capability.
Record assembling is part of rearrangement; in many cases the character-
istics of EDP equipment require that long records on magnetic tape be
assembled from a series of smaller input records.
3. Classification of Input Data
When the input data have been cleared of errors and rearranged in
suitable form, the Classification subfunction processes them so that they
can be referred to the other functions for further processing. Classification
comprises five subfunctions: 1) indexing of input data, 2) catalogue infor-
mation additions to transactions, 3) referring input data to appropriate
functions, 4) management controls, and 5) control of non-DPC items.
a. Indexing of Input Data
Indexing locates the master record of the stock number specified
in the transaction. If the line item has substitution and/or interchange-
ability relationships,5 the index, Family and Subfamily number, 5'6 is ex-
tracted onto the-transaction. This results in the pertinent information
being available for the Substitution and Allocation function.
5See Chapter III.
6See Table 2, Item 3.
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b. Catalogue Information Additions to Transactions
The subfunction, Catalogue Information Addition to Transactions,
reduces to a minimum the information put onto a transaction by an originating
activity with a consequent reduction in data preparation and transmission
error. It is accomplished by maintaining the catalogue information as part
of the computer file and extracting the appropriate information to each
transaction during initial processing at the DPC. The unit cost of an
item, for example, does not have to be recorded on the transaction by the
originating activity; it can be obtained from the computer file. Similarly,
from the account number of the consignee the DPC can construct the complete
shipping address required for processing by Transportation.
c. Referring Input Data to Appropriate Functions
This subfunction is the mail clerk of the system. It looks at
the transaction code, the field that tells the processing action to be
accomplished, and the index to determine what function will apply to the
transaction. Having determined the function, it makes arrangements for
the transaction and pertinent file information to be available when the
function is to be executed. For example, this subfunction might put all
the requisition transactions for line items that have substitutes or
interchangeables onto a magnetic tape that is to be processed as part of
the S&A function.
d. Management Controls
EDP is governed by the policies and procedures dictated by
management. These policies and procedures are normally general in nature
and apply to general categories of items under normal operating conditions.
For example, if a requisition is for a line item whose stock balance is
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between certain stock levels previously established, the machine can make
the decision, based on the criteria established by management, whether to
issue or to backorder the request in question. In many instances manage-
ment will desire to exercise special controls on certain individual items
outside the usual rules regardless of the priority of the request, stock
status, or stock levels. Such controls can be achieved as separate functions.
Some examples of line items requiring special control follow:
(1) Air Force regulated-type items
(2) Prime depot regulated-type items
(3) Weapon system regulated-type items
(4) Critical items
(5) Materiel purchased for a particular
organization or project
(6) Requisitions for items in which the
quantity requested is excessive
(7) Requisitions from organizations outside
the system complex
Exercising such controls for the manager is considered the Management
Controls subfunction. If the manager can delineate his rules for any
of the above controls, EDPE can handle it as a routine processing job;
otherwise the transaction involved is transmitted to the manager by the
DPC.
e. Control of Non-DPC Items
In some EDP systems, e.g., Weapon System Management, it is re-
quired to exercise partial control over requests for items of supply
which are not included in the system complex. To elaborate, in a Weapon
System all requests from activities within the system are sent to the DPC
('as agent for the WSM). Requests for line items not stocked at the WSSS
need to be forwarded to the appropriate Property Class Manager (PCM).
Since the DPC maintains no accountable records for such items, requests for
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them would ordinarily be rejected by the DPC. Because there is a large
volume of this kind of transaction, a procedure is needed for automatically
routing these requests to. an appropriate prime depot.
This is accomplished by maintaining in the computer a list of subclass
codes, e.g., 1AML and its corresponding prime depot, SAAMA. This list,
denoted as Classification Directory, is referred to when any stock number
has been found not to belong in the system. It is only when the subclass
code of the non-system stock number is not in the Classification Directory
that the transaction is rejected.
D. Evaluation of Manual, EAM, and EDPE Input Data Control
Whether to use manual methods, EAM, or EDPE for Input Data Control
is a question that needs to be resolved by data processing systems people.
This section gives the characteristics of each and draws some conclusions.
1. Manual Input Data Control
Manual Input Data Control in the present Air Force logistics system
is characterized by: 1) the necessity for manually editing all information
whether correct or not, which involves an excessive expenditure of clerical
resources which could be better utilized in checking the exceptions only;
2) applying judgment-type checks based on experience: the detection of a
priority which appears to be too high for a particular base is an example;
3) the high degree of redundancy in input information which is present in
order to aid control; and 4) the inability to ascertain whether or not a
clerk executes all of the required checks.
2. EAM Input Data Control
Input Data Control in the present logistics system is characterized
by: 1) similarity of Input Data Control on EAM to manual Input Data Control,
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2) the difficulty, if not impossibility, of performing complex checks on
EAM, 3) the relative inaccuracy of EAM as compared to EDPE, and 4) the
high error potential of manual"handling of punched cards in EAM processing.
3. EDPE Input Data Control
In EDPE Input Data Control: 1) routine checks are made rapidly with-
out manual aid; 2) judgment-type checks can be programmed if they can be
logically stated - the example, previously given, of the maximum legal
priority for a base can be programmed as a check if desired; 3) only
those exceptions which cannot be conveniently handled by EDPE need be
manually edited -- this permits a more intensive manual check of errors
detected by EDPE; 4) every required check is applied without fail since
they are machine programmed; 5) errors are usually detected before they
result in file garbles or undesirable logistics actions; 6) machine peculiar
checks are requisite; 7) many Input Data Control functions which are not,
but should be, performed in the manual operation must be done by EDPE;
8) a high degree of redundancy is not required and not necessarily useful --
there are fewer possible opportunities for error when redundant information
is obviated; 9) EDPE error checks have the second order effect of reducing
actual errors -- the return of erroneous transactions to the originating
agency tends to promote the generation of more accurate transactions; and
10) regardless of the amount and degree of the manual or EAM checking per-
formed, every check which can conveniently be done on EDPE must be executed,
even though a similar manual check has been made.
The relative inaccuracy of manual clerical operations and of EAM
cannot be tolerated-in EDP applications. Studies of clerical data handling
operations indicate that an error rate of one error per hundred operations
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is typical. RAND experience with one large scale EDPE is on the order
of one error in 25 million computer operations; EDPE reduces the net
amount of error incidence in a system.
4. Input Data Control Responsibility
For the reasons just discussed it is apparent the EDPE Input Data
Control, supplemented by manual checking of error exceptions, is superior
to manual or EAM Input Data Control. Although supply organizations need
to insure that all supply information input is checked, the checks do not
have to be made manually-by supply personnel. If a DPC can perform the
Input Data Control function more efficiently and thoroughly, it should be
utilized by supply management for that purpose.
E. File Data
1. Description
Many different files of information, such as a main balance file,
are integral parts of an inventory control EDP system. These files usually
consist of records of information containing a significant key which can
be used to order the records within the file. The stock number is an example
of such a key. In contrast, a table of data usually comprises a simple
compilation of such key or reference data. A list of base stock record
account numbers is an example of such a table. One example of file data
is the record that must be maintained by stock number for every item of
supply which has ever been designated for control by the center and has not
been deleted from the stock list catalogue, regardless of its present status.
Such a record should contain, but need not be limited to, the following
information relative to the identified item of supply:
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(1) Identifying stock number
(2) index number?
(3) New stock number (only if identifying stock
number has been changed)
(4) Catalogue data (Examples: unit of
issue, unit cost)
(5) Management controls -- codes to indicate
that special review of transactions
against these particular items prior to
issue are required either by machine or
manually. (Example: regulated or critical
items)
-(6) Special instructions (Example: handling or
freight classification codes)
(7) Stock list change authority
(8) Status code -- a code to indicate the
present status of the identifying stock
number. (Examples: active stock number,
changed to another stock number, changed
to local purchase, obsolete)
An example of a format that may be used in a?master record which contains
the above data is that of Table 2.
2. Collection of Initial File Data
In order to have a data file at all, the data in the file must be
collected for DPC use; this collection task is enormous. Often there is
more than one source for a particular kind of information; as a result,
an official source must be designated. For example, the unit of issue for
a line item appears in many Air Force documents; the determination could
be that the unit of-issue should be provided by an appropriate cataloguing
section, acting under the direction of its WSM (or PCM). The compilation,
purification, and transcription into EDP media of file data appear to be
costly and time consuming.
Perhaps the most serious problem in this area is the preparation and
transcription of file data into the desired EDP media and formats. This
is still true, even though most of the data are already on punched cards.
7
See Section'C,3,a of this Chapter
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OCAMA experience is interesting: it took at least 20,000 manhours (some
estimates are as high as 50,000) to prepare some of the file data for
6,000 stock numbers in the 021 property class for a computer application.
Even though some of the data. were in existing punched card files, the
desired data were copied by hand onto forms in the desired format and
then keypunched into cards. Such experience indicates a need for pre-
paring those data files which may later be used in an EDP system (e.g.,
manufacturerts part information files) not only in EDP media, but also
in a form which will facilitate file preparation for DPC use. It is
typical for manufacturers to use several punched card decks or files, such
as a provisioning parts breakdown file, a parts deck, and an illustration
index, in their operations. In the future it may be necessary to require
that, originally, the spare parts manufacturers (at least the large ones)
assemble data for new parts specifically for EDP applications.
3. File Maintenance
Once a file is created it must be maintained, i.e., updated and
corrected. File correction is largely the changing of static or indicative
(i.e., non-balance-type) information, such as changing the unit of issue
from ?teach?? to "pair." Just as it is desirable to generate file data for
EDP use, it is important to generate file change information in a form
directly usable by EDPE.
A file should be periodically purged of erroneous or out-of-date
records which have crept-into it. If, for example, an erroneous stock
number were entered accidentally on a file, there would never be any
future activity against this stock number record. By using techniques
such as recording and periodic checking of the data of last activity such
incorrect records can be detected and erased.
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F. Output Data
? Output Data is definedg in one of two ways: 1) information transferred
from the internal storage of a computer to secondary or external storage
(for subsequent computer use) or 2) information transferred to any device
exterior to the computer (for manual use). Output data is generally
thought of as having only the latter meaning. In technical discussions,
however, it is convenient to have both and allow the context to show
which is the appropriate one. Hence, either will apply in the remainder
of this paper. The output data of each function will be discussed; this
does not imply that the same output data will occur for all EDP systems
that use these functions. As a matter of fact, the generation of output
data is closely related to the methods employed. For example, in in-line
processing most of the output data is for manual use only because most
or all functions are performed on the transaction while the transaction is
in the internal storage of the computer. In off-line processing the bulk
of the output data of one function is the input data of another function
since a group of transactions are operated upon individually by each
function in turn.
gCommittee on Nomenclature, Association for Computing Machinery,
"First Glossary of Programming Terminology," 2 June 1954.
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Chapter III
SUBSTITUTION AND ALLOCATION FUNCTION FOR AIR FORCE INVENTORY MANA
A. Introduction
Air Force inventories must be managed so that there will be spare
parts on hand for filling requests of high priority as they occur,
and at the same time requests of lower priority will be filled as far as
possible. This implies the need for an efficient procedure for allocating
spare parts. Since substitute relationships exist between many of the
spare parts, the management of the inventory would be more efficient if
these relationships were taken into consideration for purposes of allocating
spare parts. It does not really accomplish much to allocate a part in a
certain manner while ignoring the fact that the part has certain substitutes
or is, itself, a substitute for other parts in the system. Consequently,
procedures are needed which allocate the parts by taking into account the
substitute relationships between them.
This chapter will describe the procedures and considerations which
are necessary to handle the Substitute and Allocation (S&A) function of
a logistics data processing system. In the beginning the definitions of
terms used will be given; later a typical S&A procedure will be shown using
as a basis for the example the highlights of an S&A computer routine worked
out for the B-52/KC-135 weapon system management project at OCAMA. Much of
the subject matter is not new; it is to a large extent what has been done
-- or at least what has been attempted -- manually and on EAM. But whatever
is handled manually can be done much more thoroughly, accurately, and speedily
See Figure 2, for logical block diagram.
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Changes to master file:
Additions
Deletions
Changes of data:
Family number
Sub-family number
Substitution information
Etc
Determine
transaction
type
S and A transactions
with index
(Fro'm classification)
Posting of reported
transactions:
Receipts
Issues
Inventory
adjustments
Filling of requests
(See detail logic
in chart-
appendix II)
Shipping order
"triggers"
To main balance function
Back order and
expedite notices
(Sent to requesting
activity)
Fig. 2-Logical block diagram of the
substitution and allocation function
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on EDPE. In order that such equipment can be programmed to handle the
work the job must be broken down into its various components regardless
of how small or trivial they may seem. In such a breakdown certain seg-
ments may look extremely simple, but these are usually statements of what
has been done manually for a long period of time. No matter how simple or
obvious some of the elements may seem, they must still be stated in such a
manner as to be translated into machine language for the EDPE.
B. Substitute and Allocation (S&A) Procedures
1. Definition of Terms
To describe a system capable of handling most types of S&A procedures
which might be prescribed by a supply manager, certain terms must be defined.
In general the parts with substitute relations are classed into two broad
groups: interchangeable parts and substitute parts.
a. Interchangeable Parts
The term "interchangeable parts" refers to two or more parts
which can be substituted for each other in all situations. If Parts A.
By C, and D are defined as "interchangeable," then Part By C, or D can be
used in place of Part A regardless of the application to which Part A might
be put; similarly, if there were a request for Part B, C, or D then any
of Parts A, By C. or D could be used to satisfy the request. If for any
reason, no matter how slight, a part cannot be used as a substitute for
another part in all situations, the two parts would not be termed inter-
changeables.
In connection with the concept of interchangeable parts, there exists
another term, the-subfamily; that is, a particular group of interchangeable
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parts will be known as a subfamily. Thus, in the example given above
Parts A. B, C. and D constitute a subfamily. As will be seen later, a
subfamily can contain one or more parts.
b. Substitute Parts
A "substitute part" is defined as a part which can be used in
place of another part, but the two parts are not interchangeable. For
example, Part F may very well be used in place of Part E, but Part E
cannot be used in place of Part F. E and F might be two pumps, both
capable of performing the same job, but one is larger than the other
and cannot be installed in all places that can accomodate the smaller
one while the smaller one can be used in place of the larger one in all
situations. Part F is a substitute for Part E, but they are not inter-
changeable parts. Further, there is more than one degree of substitution
included in this particular notion. Taking the same example, Part F could
be substituted for Part E in all situations (even though Part E is not a
substitute for Part F) or Part F could be a substitute for Part E for
certain applications only. It is possible that Part F could be substituted
for Part E only if the part were to be used on a certain aircraft type
and model, or even a certain aircraft type, model, series, and serial
number. In the first case, F would be a substitute for E, while in the
second case F would be a substitute for E with certain limitations; in
other words, it is a "limited substitute."
c. Families and Subfamilies
One more term will be defined: the "family." A subfamily has
been defined as a group of parts all of which are interchangeable. A
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"familyt" is defined as a group of one or more subfamilies. The reason
for grouping certain subfamilies into a family is that there is some
substitute relationship which links one or more parts in one subfamily
with one or more parts in at least one other subfamily. Take, for example,
the following family containing Subfamilies 1, 2, 3, and 4 with their
parts represented as follows:
Subfamily Number Parts
1 A B D G
2 K M
3 L P R
4 C
In this example--any two parts on the same horizontal line (in the same
subfamily) are completely interchangeable with each other. If a request
is made for a particular part, the part,requested or any other part on
the same line could be used to fill the request in any situation. The
reason Subfamilies 1, 2, 3, and 4 are grouped into the same family is
that there are substitute relationships connecting these subfamilies.
Part M might be a substitute for Part D in any situation (but D is not a
substitute for Part M. otherwise the two parts would be in the same sub-
family), or Part M might be a limited substitute for D (based upon aircraft
type, model, series, and serial number). Similar relationships exist
between two or more parts of different subfamilies which make it desirable
to group these subfamilies into one family. In most cases if, for example,
D is a substitute for M it would also be a substitute for K (since K is in
the same subfamily as M). However, there have been instances where two
parts such as K and M fare completely interchangeable with each other and
yet a part which will substitute for one might not be desirable as a
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substitute for the other. Situations of the type arose in the B-52/KC-135
Weapon System application. This method of keeping the substitution record
serves as a means of handling the situation. Note that Subfamily 4 has
only one part. This indicates that C is a substitute for one or more of
the parts in Subfamily 1, 2, or 3 or that one or more of the. parts in Sub-
families 1, 2, or 3 is a substitute for C and that no part is completely
interchangeable with C.
It is entirely possible for a family to consist of just one subfamily.
This would indicate a group of parts which are interchangeable with each
other and which have no substitute relationship whatever with any parts
outside the subfamily.
In general, it can be said that the grouping by family is technically
not necessary, but it might be desirable as a means for grouping certain
records. This is very useful in data processing where selecting an inter-
changeable part or a substitute part could be handled easily by carrying
together all parts which could possibly have some substitute relationship
with each other. Unfortunately, the length of an entire family could be
such that its use would be precluded by the type of EDPE being employed.
Grouping by subfamily, on the other hand, is necessary for more than
just ease of data handling. The use of the subfamily is required because
management needs to manage the parts by subfamily, as will be shown later
in this chapter. Even if a subfamily were longer than could be handled
conveniently by the EDPE being used, the grouping by the subfamily would
be required for supply management. There are two cogent reasons for this:
1) certain decisions will be made based upon subfamily balances and levels,2
See Section C,2 - of this Chapter.
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and 2) RAND research3 has shown that a group of parts having interchange-
ability relationships is a better basic unit in demand analysis and fore-
casting than an individual part number. Records for individual stock
numbers, however, can be arranged individually (randomly or by stock number),
or they can be grouped in some way (by subfamily only or by family and sub-
family). When arranged by stock number, the record for each stock number
must refer to all possible substitute and interchangeable parts as well as
to the record, if any, for the subfamily of which the part is a member.
If arranged serially by stock number, there is no problem in finding an
individual part's record in the file; if arranged by part, but randomly,
an indexing operation is needed whereby the actual location of a part within
the file can be found. If arranged by subfamily only, or by family and
subfamily, there will also be a need for an indexing operation which will
give, for a particular stock number, the number of the group record in
which it can be found (whether a subfamily number oz' a family and subfamily
number). The indexing operation must work with a master file which is
arranged by stock number and which gives, for each stock number, the nec-
essary identifying information which will locate that stock nu#iberts
record in the file.
A combination-of indexing methods could be used. In the B-52/KC-135
weapon system, for instance, items which have substitute relationships are
arranged by families and subfamilies while others are arranged by stock
number. In the former case the indexing operation applies the family and
subfamily number of each part for each transaction while, in the latter
3T. A. Goldman, Relationship Between Program Elements and System
Demand for Airframe Spare Parts, The RAND Corporation, Research Memorandum
RM-1858, 22 January 1957.
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case, indexing leaves the stock number as given; this is carried out in
the Input Data Control function.
2. The Use of Management Levels and Priority Ratings
To manage the inventory of spare parts so as to be certain of filling
urgent requests, a system for allocating the parts is needed; the allocation
can be accomplished by a..system of "priority ratings.ff The priority rating
system which probably does this best would be based upon mission category
and urgency of need of the requesting party. A possible priority rating
system is one in which one of five different priority ratings is assigned
to each request, not including routine resupply. This rating is applied
automatically at the DPC, since it is a function of mission category and
urgency of need, both of which must appear on every request. The priority
rating is then used for determining whether or not a request should be
filled in the event that stocks of the requested part are below some
specified level as discussed below. This is done by using assigned priority
ratings in conjunction with a series of management levels.5
If filling a request would bring the item's total system stock (amount
on hand after filling the request plus amounts in transit and en route) 6
to below the War Reserve Level, no issue can be made since the War Reserve
Level is inviolate under AFM 67-10. If filling the request would bring
the system stock below the Allocation Level (but not below the War Reserve
Level) then the request can be filled only if it is of a high priority,
4
See Appendix I.
5
For a fuller discussion of levels see Chapter IV and Air Force Manual 67-10-
=._
6
See Section D. 1 of this Chapter for definitions of "in transit}} and"en route."
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i.e., Priority 0 or 1. If filling the request would drop system stock
to below the Warning Point Level (but not below the Allocation Level)
then the request can be filled only if it is of Priority 0, 1, or 2. Finally,
any request can be filled if by so doing the system stock of the item
will not fall below-the Warning Point Level. The site levels are used in
a similar manner when determining whether or not a site should be directed
to make an issue, but not as a part of the S&A function.
At first glance this seems to be an over-simplification of the present
Air Force priority system which has sixteen priority ratings. However,
upon closer inspection it will be noted that the Air Force actually has
only five different ratings which are based upon mission category while
the breakout into sixteen different ratings is largely for purposes of
the transportation used in shipping the spare parts. The "date of need"
is still available in the system being proposed, and if a special
breakdown for transportation purposes is still desired, it can be handled
without upsetting the Priority system as suggested in this paper and
shown as Appendix I.
The four system stock levels have been established for the purpose of
controlling issues of spare parts. These levels are also used for the
control of entire subfamilies.
The fourth system level, the Requirement Level, is a point at which
management desires a notice so that steps can be taken, if necessary, to
avoid reaching the next lower (Warning Point) level; this level does not
enter into decisions regarding the filling of requests.
With the use of the four different levels and six different priority
ratings, the management of the spare parts inventory is handled in two ways:
by subfamily and by individual part.
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a. Management by Subfamily
Since all of the parts in a subfamily are completely inter-
changeable for all applications, it would seem that there should be a
means of managing such parts as though they were all the same part. Thus,
there exists a need for subfamily levels and balance totals. The use of
these levels and balances provides extra assurance that urgent requests
for any part in the subfamily will be filled even if the serviceable
balance of that particular part (stock number) is zero. If there were no
subfamily management, it would be possible to fill a low level request
for Part A, itself in sufficient supply, only to discover later that this
part is needed later as an interchangeable for Part B which is in critical
supply and for which a high priority request has been received. Manage-
ment by subfamily level checks makes the assumption that all parts in a sub-
family are really only one part.
Another use for management by subfamily is in the area of consumption
and demand statistics. Since all parts in a subfamily are, in a sense,
merely one part, statistics might be compiled by subfamily as well as by
individual part; statistics by subfamily would be useful in computing re-
quirements, procurement, and repair schedules.
b. Management by Individual Stock Number
In addition to managing parts by subfamily, there is a need for
managing parts individually, which means levels must be established for each
part in the subfamily as well as for the entire subfamily. It is sometimes
held that if the subfamily quantity is such that an issue can be made from
this subfamily to fill a-particular request, then a check need not be made
of its individual partst balances since there will be a sufficient balance
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in the subfamily regardless of which parts in the subfamily are used to
fill the request. There may be, however, situations where the supply
manager desires to manage one or more parts within a subfamily differently
from the others, and this can be done only by setting levels for individual
parts. In some cases certain governmental regulations force the purchase
of identical parts from several different manufacturers.- When this happens,
the manager must insure that the individual parts are issued in such a
manner that the system does not exhaust the parts manufactured by one
company and accumulate a large stock of items manufactured by another.
This can be handled by establishing levels for individual parts and issuing
the parts in a subfamily in accordance with a desired goal. In short, levels
for individual parts give us the flexibility of being able to force the
issue of certain parts or to save certain parts allowing others to be
used first. It may be that this individual part level management is not
needed at all times, but it is desirable to have the capability built into
the system.
Thus, in determining whether to fill a request, a check should first
be made on the subfamily levels and balance; if this test is passed,
then a check is made on the part requested before the part is actually
issued. If the individual part test is not passed, then an interchangeable
is searched for, always checking appropriate levels and balances before
issuing.
3. Required Substitutes
Another subfunction which must be part of the S&A function is the
ability to handle required substitutes. A "required substitute" is the
part which the supply manager desires to issue whenever a certain part is
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requested regardless of the balance on hand of the requested part. There
are probably two main reasons for requiring that a part be used as a
substitute.
First, it may very well be that, although the required substitute is
usable, it is desirable to phase it out of the system, e.g., because there
are newer parts which have the same use but which are made of different
material. In such a case it might be desirable to use up the old part
first, and this can be done by requiring that this part serve as a sub-
stitute for any of the newer parts. This objective can be attained by
setting all levels for the required substitute to zero; then, when this
part is referred to as a required substitute, it will be issued without
restriction until depleted.
On the other hand, apart may be denoted as a required substitute
merely because there is an excess of it in the sytem. In such a case
instead of setting the levels of the part to zero, such levels would be
set to an amount which would rid the system only of the excess amount in
stock.
The handling of required substitutes by varying the levels as desired
can be done only if levels are carried for individual parts; this is _
further reason for not limiting the levels used in the S&A procedures to
subfamilies only.
4. Disallowance of Substitutions
A situation which can be looked upon as being the opposite of that
mentioned in the previous section (Required Substitutes) is thatin which
a request is made for a part for which no substitute can be accepted. This
can arise when the part is going to be put to a rather special use and,
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consequently, a specific stock number is needed. For example, a special
modification, which the squadron commander feels is too recent to be
known by the DPC, may have been made to an airplane and he might know
that no part will substitute for the part requested; or in some instances
a squadron commander_may insist on equipping his airplanes with certain
parts and not accept substitutes. While this may be undesirable, we
should recognize that it will no doubt happen and must be handled in
some way. These situations are handled by the use of a t"No Substitution"
code which must be placed on these transactions when the requests are
initiated. If the computer is unable to issue a requested part, and the
request contains a "No Substitution" code, the request must be backordered.
If no such code is present, the usual method of attempting to issue inter
changeables and substitutes will be employed.
5. Filling Requests with More Than One Part
It is quite possible that a request might be filled with several
parts. Due to the additional trouble inherent in filling a request with
more than one part number, such a procedure is desirable for the higher
priority items only, probably Priorities 0, 1, or 2 where the "days of
needtt is 20 days or less.7 In such cases the request could be filled
with the part requested, an interchangeable part, a suitable substitute,
or with any combination of these as is deemed necessary.
Since Priority 3 and 4 requests represent a need for spare parts in
not less than 21 days, ho harm would result if these requests were back-
ordered for the one part rather than filled with more than one part.
7Using the priority system defined in Appendix T.
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This is especially apparent when it is realized how backorders are
handled, i.e., that the "days of need" on a backordered request is
decreased by one day each day that the request is backordered, and
eventually (when "days of need" becomes less than 21) that a Priority
3 or 4 will become a Priority 1 or 2 respectively at which time
requests can begin to be filled by any combination of parts necessary.
There is always the chance that, before a request's priority changes from
3 to 1 (or 4 to 2). the appropriate items will come into the system
thus making it possible to fill the request with one part only.
6. Routine Replenishment
In the chart of priorities8 it will be seen that in addition to those
requests having Priorities 0 through 4 there is-a Priority 5 which is
labeled ttroutine replenishment." This is the rating assigned to requests
that are usually initiated by the system itself when bringing the balance
of a particular part at a given location up to a required level. Very
rarely will a request for routine replenishment come to the Data Pro-
cessing Center from an outside location, since by having preset levels
for all parts for all locations, it is possible to prepare automatically
those requests which will result in the shipment of sufficient quantity
of an item to bring a location's balance of that item to the required
level.
In filling requests for routine replenishment it should be remembered
that the establishment of a Priority 5 level is generally for the purpose
See Appendix T.
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of restocking a location and not for supplying a particular aircraft with
an item. Consequently, there should be less cause for substitution in
these cases. Under Priority 5-the only allowable substitutes (assuming
the part requiring routine replenishment is not available) should be
interchangeable parts, inasmuch as there may be limitations based on
particular aircraft. If it is desired, however, to issue a substitute
part from a different subfamily for routine replenishment, it can be done
by making certain that the part being substituted can be used wherever
the part being replenished (and every part in its subfamily) can be used.
This can be accomplished by comparing the application limitations for all
parts involved; a better way might be to include, along with the subfamily
information, a listing of possible substitutes that could be used for
every part in the subfamily. Making certain substitutions for routine
replenishment does, however, create a major complication -- keeping track
of the situation so that repeated attempts will not be made to replenish
the subfamily for which the substitute part was selected.
7. Notices to Management
In the course of carrying out the S&A function situations will arise
that necessitate management decisions, or at least notices to management.
Such notices can-be handled automatically by the DPC; examples of such
notices follow. --
Since the four different levels are of importance to inventory manage-
ment, the computer should automatically print notices to management each
time the system balance of any subfamily or any individual part drops
below one or more of the four levels. This requires the determination of
the balance of each subfamily and of each part in relation to their respective
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levels at the beginning of the posting cycle, and then a comparison of the
ending balances with all respective levels at the end of the cycle. If
any levels are reached, notices indicating this will be printed. Where
a subfamily balance has reached a level, the notice will show in addition
all conditions (serviceable,
all balances for all parts in the subfamily
reparable, TOC, etc) and locations for the parts so that management can
make appropriate procurement, repair, or shipping decisions. If an
individual part in a subfamily reaches a level, the same practice will
hold true, i.e., balance information for all parts in the subfamily, as
well as for the subfamily itself, will be printed out since the parts are
interchangeable and should be considered as a unit when making a decision
concerning any individual part.
Other management notices can be printed out as needed, but those
mentioned above will probably be the most useful notices that the S&A
function of the inventory control problem will provide.
C. Data Requirements for S&A Procedures
1. Substitute Relationships and Their Limitations
For the S&A function to operate successfully certain data are necessary.
The most obvious data which must be collected consist of all of the inter-
changeable and substitute relations. These data are obtained largely from
aircraft manufacturers; but, the Air Force itself also accumulates infor-
mation which augments that of the contractor. Hence, a system is required
that will funnel these inter-relationships, from whatever source, into the
S&A file. In addition to the collection of data which describe the inter-
changeability and substitutability of the spare parts, there must be
collection data on limitations of applicability of any part by aircraft,
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model, series, and if necessary, serial number. In some cases it might
be necessary to carry such limitations by appropriate higher assembly
rather than by end item (or evert a combination of appropriate higher
assembly and end item). For example, in a missile supply system there are
many cases of one part, say A, being a substitute for another, say B, when
B is to be used on an assembly, say C; yet A might not be a substitute for
B if A were to be used on another assembly, say D. Obviously, when such
a part is requested from the DPC, unless the appropriate higher assembly
on which the part is to be used is used.is specified, no substitution can
be made. _
It is apparent that the substitution information does not have to
be complete for the S&A function to operate; actually, such a file is
never 100 per cent complete at any one time. But the more substitution
data are known and used, the better the S&A function can be performed.
It is certainly true thatnot all substitute relationships are known today;
yet the Air Force is operating with what it does know. The system employed
should readily accomodate the addition (or deletion) of substitution data
as required. _
The Air Force, today, may not be using effectively all of the substitute
relationships on which it has data because of the difficulty in handling
these data manually or by EAM. Once a computer is programmed to include
this information, the relations which are known and given to the computer
will always be used, whereas, in a non-electronic system they may be for-
gotten or ignored.
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2. Management Levels for Parts and Subfamilies
In addition to substitute relationships there are the various manage-
ment levels which are needed for each part and each subfamily. Since these
levels are for the two-fold purpose of keeping management informed on the
status of each individual part and subfamily, and for'processing issues
in certain ways, they must be determined by the supply manager. The
supply manager could compute the levels himself and merely furnish them
for use in the computer-as might very well be the case in the beginning
of such an automatically controlled system. It is hoped, however, that
ultimately a refinement can be added whereby the manager merely states
how he would like the levels to be computed, giving detailed procedures
and describing factors to be used in such computations, and that the actual
periodic computations will be made automatically. Automatic computations
will no doubt mean that the levels can be computed as often as desirable,
taking into account more factors and more advanced techniques than if they
were done manually. -In-addition, the use of machines for computations makes
possible the use of more differentiated computational techniques and greater
degree of accuracy.
D. The B-52/KC-135 S&A Procedure, An Example
What type of procedure can be developed that will provide a quantitative
interpretation of the criteria implied by the policies of management in
such a way that EDPE can carry out these policies? An example based upon
actual work performed in the EDP system development for the B-52/KC-135
weapon system at Oklahoma City Air Materiel Area will be given. The
procedure developed there allows for the handling of virtually all situations
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which could arise in making substitutions and allocations. There are
sufficient decision points in the procedure to give the manager a great
amount of flexibility in managing his stock. As will be seen, the manager
can vary his management methods considerably by altering such things as
levels, order in which substitutes are listed, etc.
In following the procedure to be explained reference will be made to
the charts described in Appendix I, Distribution, Short Supply, and Back-
order Policies, Appendix II, General Procedure for Handling Requests, and
Appendix III, Family Record for the B-52/KC-135 Weapon System.
1. Maintenance of System Balances
An EDPE record in the B-52/KC-135 weapon system S&A file consists of
a family of parts. The individual parts in a record are arranged by
subfamily. In order to manage parts by subfamily, as well as individually,
the four different levels mentioned above are maintained for each sub-
family and for each part in a subfamily. In addition, certain balances
are carried for each subfamily and part. These balances are the quantities:
1) on hand (OH), i.e., the total amount of a part which is physically on
hand at all locations being controlled, 2) in transit (IT), i.e., the total
amount actually moving within the system from one controlled location to
another controlled location, and 3) en route (ER), i.e., that amount which
has been shipped from a place outside the system and is due to arrive at a
location within the system. In the beginning phase of B-52/KC-135 weapon
system data processing the DPC is to maintain balances for weapon system
storage sites (WSSS) only and not for the various bases; so, at this point
the quantity on hand refers to that amount at storage sites, in transit refers
to the quantity being shipped from one storage site to another, and quantity
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en route indicates the amount shipped from outside the B-52/KC-135 weapon
system (probably from a vendor or AMA) and due to arrive at one of the
system storage sites. In addition to the balances which are maintained
for both subfamilies and parts, a balance is carried which indicates, by
subfamily only, the amount of the part which was backordered, i.e., the
amount of unfilled requests for parts in each subfamily. It must be borne
in mind that all management levels and balances which are carried in sup-
port of the S&A functions are for the system as a whole; they do not refer
to any individual location within the system.
2. Description of Family Record
It is advisable to look at the actual record which is being used in
the B-52/KC-135 weapon system and to explain those items which have not
been previously discussed. This record is found in Appendix III; reference
to this appendix is made by item number.
a. Weapon System Information
The first part of the record consists of information pertinent
to the entire record as a part of the weapon system. Item 4 identifies
the family record as to weapon system, i.e., B-52 or KC-135. Item 5
(length of entire record) is merely a figure needed for purposes of pro-
gramming for the EDPE; there are many such programming aids throughout
the record.
b. Family Information
The next class of information pertains to the family itself, and
Items 10 and 13 are the only ones which will be discussed here. Item 10
identifies the family by number; this number is applied to all transactions
during the Classification procedures. Item 13 is updated each time a change
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(other than the posting of a receipt, disbursement, or adjustment) is
made to the file and is used as an auditing aid in providing a means for
tracing all such changes through the appropriate transaction registers.
All other items of "family information" are merely programming aids.
c. Subfamily Information -
The subfamily information includes the four levels (Items 28, 29,
30, 33) and three balances (Items 26, 27, and 34), which have already been
discussed, as well as Items 20, 25, 32, and 35. Item 20 is the subfamily
number which is added to all transactions as a part of the Classification
procedure as is the family number. Item 25 consists of the unit of issue
for all parts in the subfamily (it should be pointed out here that no two
parts can be in the same subfamily if they have different units of issue).
Item 32 consists of a listing of all of the aircraft (by type and model
only) on which the parts in this subfamily can be used; detailed applications
by serial number are given under the individual parts. The broader break-
down for the subfamily as a whole supplies a means for the more rapid
elimination of those subfamilies which do not contain possible substitutes
than would the examination of detailed applications for each part in the
subfamily. Item 35 identifies that part in the subfamily which is con-
sidered the master part for the subfamily.
d. Part Information
As for the information carried for each part, the following items
of information are cited: Items 44, 45, 46, 48, 49, 50, 59, and 51, all
of which have been discussed in preceding sections, plus Items 41, 52, 54,
and 71. Item 41 is the actual part number, and it will be noted that the
part number is carried only once for each part, i.e., it is not carried
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where the part is listed as a substitute. Item 52 consists of a listing
of all required substitutes (using codes), while Item 54 lists all other
possible substitutes for the part (again using codes). It is necessary to
bear in mind that the required substitutes and other substitutes for any
part will always be in the same family as the part.
Item 71 consists of nothing more than a listing of "fromts - tots'+
which are referred to by Item 56. This comprises any of those type, model,
and serial number limitations which may apply to a particular part. Before
issuing a part as a substitute for a requested part, the Item 56 for the
possible substitutes is checked for references to the table of limitations.
If there are any references, all such references are examined to make
certain that the part can actually, be used on. the aircraft for which the
request is made. All items not described are needed for programming pur-
poses.
3. Posting of Transactions
A typical example of the B-52/KC-135 S&A routine will now be given.
Before the posting of any transactions,all transactions (receipts, issues,
requests, changes, adjustments) must first be processed through the Class-
ification procedure in which,-among other things, it is determined whether
each transaction is for a part which belongs to a family or for a part
which does not have any possible substitute relationship with another part.
If the latter is the case, the transaction is made to bypass the S&A func-
tion and is routed directly to the Main Balance procedure where the de-
tailed records by location are maintained. If, however, a transaction is
for a family item, then the-index number (family.number plus subfamily
number) is applied.
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The transactions entering the S&A routine are then sorted into types
by weapon system and family so as to be handled in the following order:
Type 1 -- Receipts for the entire family
Type 2 -- Issues for the entire family
Type 3 -- Adjustments for the entire family
Type 4 -- Changes to file for the entire family
Type 5 -- Requests - arranged by priority - and
including previous requests which had
been backordered
The procedure is for transactions of Types 1 through 4 to be posted to
the entire family. Thereafter requests will be filled, if possible.
lam. _Processing of Requests
The chart of Appendix II is a reference for the discussion that
follows:
Starting at, the center top of the chart (Box 1), assume that
a request for a part needs to be satisfied. Assume further that the
family record to which this individual part belongs is in the working
memory of the computer. The first step consists of locating the part
in the family and checking Item 52 for this part to determine if a
substitute is required (Box 2). Assuming no substitute is required an
attempt will be made to "issue:' the part.9 The next step is to compare
the subfamily (Box 3), the total of quantity on hand plus in transit plus
en route minus quantity requested equals S.S. (i.e., the entire subfamily
system stock after-filling the request) with the appropriate management
level for this particular priority request. The dhart of appropriate
9 The term "tis-sue"" is used in the sense of triggering issue as a part
of the main balance procedures since actual issues are not included in
the functions of S&A.
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levels used in the B-52/KC-135 system is shown in Appendix I. If this
subfamily test is passed, the request can probably be filled from this
subfamily, that is, from the requested part or an interchangeable part.
A check is then made-(Box 4) on the individual part requested by
comparing the system stock (on hand plus en route plus in transit) less
the amount requested with the appropriate level. Assuming this test is
passed, it must be determined, even though there is a sufficient quantity
of the item in the system, if there is actually enough in supply bins
awaiting issuance. This is done in Box 5 where the quantity requested is
compared with the quantity actually on hand. If this test is passed, the
actual issue is made (Box 6), and we return to Box 1 to handle the next
request.
The procedure just described should be the standard one for the majority
of cases (Boxes 1, 2, 3, 4, 5, 6, and back to 1); however, as seen on the
chart, when there is a decision to be made, it is possible to depart from
this particular routine. The branches leading from Boxes 2, 3, 4 and 5 are
now discussed.
b. Deviations from the Standard Routine
In Box 2 it is determined whether there is a required substitute.
If the answer to this is yes, then the routine branches off to the left.
Remembering that required substitutes might exist for two different reasons:
(1) to rid the system entirely of the required
substitute, in which case its levels would
be zero, or
(2) to reduce the quantity in the system to a
specific amount, in which case the levels
will have a value other than zero,
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it must first be determined on this required substitute branch whether
the levels of the required substitute are zero (Box 16). If so, as much
of the item as is necessary will be issued even if the stock is depleted
(Box 20). If the request is not completely filled, we return to Box 2
to attempt filling the unfilled portion by checking first for other re-
quired substitutes. If, on the other hand, there are specific non-zero
levels stated for the required substitute, then the required subfamily
test must be made, followed by the individual.part test and an on hand
test (Boxes 17, 18, 19). If any of these tests are not passed, we return
to Box 2; if they are, the issue is made (Box 6), and then back to the
.beginning (Box 1). Now-the branches from Boxes 3, 4, and 5 are examined.
At Box 3 the ttnott branch leads to the routine of looking for sub-
stitutes for the parts requested (it is known that no interchangeables
are available for this request, inasmuch as the subfamily test was not
passed). The substitutes are found by examining Item 54 for the requested
part (Box 7). If there are substitutes listed, the first one will be tried
by making the subfamily and part tests (Box 7 returns to Box 3, but for the
new subfamily). If the question asked in Box 7 reveals no substitutes,
then attempts will be made to. satisfy the request from more than one part
(if the priority is 0, 1, or 2) or else the request is backordered after
decreasing the "days in need" and increasing the priority of the request
if such is warranted.
Box 4 has a branch which indicates that even though the subfamily
test may have been passed the individual item test has not been passed.
Here three different things could happen depending upon whether the item
tested in Box 4 was the part requested, an interchangeable part, or a
substitute for the part requested.
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(1) Part Requested
If it was the requested item, it must be determined
whether there are interchangeables listed. If so, the
path will be from Box 8 to Box 9 to Box 15, and then
back to Box 4 for the next part to be tried. (A sub-
family test is not needed again since it has already
been made for the subfamily.) If not, Box 9 will take
us to Box 7 where the process of looking for substitutes
begins.
(2) Interchangeable
If the Box 4 test was for an interchangeable item,
Box 9 determines if there are more interchangeables to
be tried. If so, Box 9 leads to 15 to 4 where the part
test is tried again; if not, Box 9 leads to Box 7 where
the search for substitutes begins.
(3) Substitute
Going back to Box 4 assume that the part tested was
a part tried as a substitute. In this case Box 8 will
lead to Box 10 where it is determined if there are more
substitutes to be tried; if so, back to Box 3 to start the
subfamily and part tests; if not, to Box 11. Box 11 deter-
mines the priority of the request, and it is then either
backordered,or attempts are made to fill the request from
more than one part as explained in an earlier section.
One more branch which must be mentioned is that from Box 5, and it is
apparent that this is a situation similar to a ""no"" answer in Box 44 hence,
the branch from 5 leads into the "no" branch from 4.
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c. Routine Replenishment
The above covers the procedure for handling requests except
for Priority 5 (routine replenishment). The chart shows dotted lines
coming from Boxes 3 and 9; these lines are for Priority 5 only, and they
follow the procedure of issuing the part needed or an interchangeable,
but never a substitute which is the best that can be done when the parts
are for stock and not a specific aircraft. As mentioned previously, pro-
cedures can be developed for issuing substitutes even for routine replen-
ishment.
d. Order of Selection of Alternate Parts
The general order of filling requests can be summarized as
(1) attempt to issue a required substitute, if any;
(2) attempt to issue the part requested; if that fails,
(3) try to locate an interchangeable part; and
(4) try a substitute part.
If none of these can be issued, the request has the "days of need" updated;
it is backordered and then processed in a similar way in the next S&A
cycle.
5. Deletions and Exceptions
This section has given a general description. The intent was merely
to show the overall procedure which is being followed in the B-52/KC-135
weapon system problem. Details have been omitted, such as the way a request
is filled from more than one part (which is largely a programming technique).
The use of the "No Substitution" code is an item not mentioned in connection
with this description, but it is certainly a part of the system as developed.
Also, it might be noted, in the flow charts that Boxes 2 and 7 use the words
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fappropriat'ett required substitute and "appropriate" substitute. By
nappropriatett it is meant that before a required substitute or substitute
is issued, Item 56 for the part-is first checked, and if necessary, the
limited applicability table is examined to determine that-the part will
work on the particular aircraft for which the request is made. It should
also be pointed out that, whenever a substitute is bonsidered, the unit of
issue is checked before the substitute is issued to make certain it is
the same as that of the requested part; if it is not, the more common
conversions will be handled by the computer while the less common ones
will be printed out for manual conversion.
The supply manager can vary his management techniques by changing sub-
family and/or part levels and by listing the interchangeables, required
substitutes, and substitutes in the way he desires since these items are
handled in the order listed in the file.
One must remember that the same S&A function could have been handled
in many other ways. The entire family record was used here because of
the type of EDPE employed. Other configurations of equipment might make
it desirable to re-arrange records so as to use the equipment effectively.
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Chapter IV
TRANSACTION POSTING AND MANAGEMENT REVIEW
A. Introduction
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This chapter describes a number of file-keeping procedures which are
minimal requirements in the accomplishment of the Main Balance (MB) functionl
of the EDP system. The chapter also shows how these procedures, supplemented
by appropriate analysis and data handling tools, can provide management
control of materiel in an EDP system covering the materiel on hand in the
system, materiel moving between activities of the complex, and materiel
moving into the system.
Since the system asset position is the primary concern of the supply
manager, any EDP system must insure that timely and accurate data reach the
various managerial levels. To accomplish this, the MB function maintains,for
each item in the inventory, a consolidated stock record account by location
(storage sites, bases, overhaul points, etc.). The composition of the stock
record account is described in this chapter. In addition, managerial moni-
toring levels, providing complete and continuous management-review capability
for each item in the inventory, are carried with the actual balance data on
the consolidated record, so that necessary allocation action may be taken as
required to forestall shortages either at a location or for the system itself.
The Main Balance file (MBF) and its maintenance are described. Some of the
more important facets of MBF, e.g., the inputs required to update the file,
the types of transactions that affect it, and the reports that evolve from
the MBF, are discussed.
1See Figure 3, page 60 for logical block diagram.
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Figure 3
LOGICAL BLOCK DIAGRAM OF THE MAIN BALANCE FUNCTION
Transaction
Input
Determine if a
change-file,
change-balance,
or MB depot
requirement
Post increase;
decrease Receipt
suspense file
Adjust appro-
priate location
balances
Increase suspense; Shipping
post decrease roc iv
Post increase
Other or decrease
Serviceable
decrease
e
reversal
or
inventory
adjustment
Review monitoring
levels
Report
required
System short-supply
notice trigger
Publish special
request for mgmt
data
Apply mgmt.
review criteria
for decision
Report
required
Shipping
order,
cancellation
or indorse-
ment
Transaction Register
Report required
Add a new stock
record; purge a
dead file
Bring information
to current and
timely status
Enter latest stock
Level change s monitoring levels
Request for information
Requisition
Report
reqd.
Report
required
Initial
backorder
notice
Expiring
backorder
notice
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B. Main Balance File (MBF) Data
An inventory-management process is based on a record of inventory;
balances for each part in the inventory are consolidated on a single master
record to include all system locations and are kept on an appropriate EDPE
medium, e.g., magnetic tape reels, magnetic drums, or magnetic discs. These
balances are accessible in sequence either directly or by indexing. Manage-
ment-review information must also be filed in each consolidated record.
During the posting to the site and base balance records, each locationts
balance record is examined so that management can evaluate both the system
and the location stock status for each stock item that has experienced
activity.
The information needed to record the supply activity and to initiate
managerial review of the supply position of the system for each stock item
belongs to one of the following classes: 1) fixed indicative data, 2)
system summary data, or 3) location data. Table 3 is a reference for the
following discussion.
1. Fixed Indicative Data
Among the catalog-type information contained within each consolidated
stock record is the stock number, including sub-class code and index2 (family/
subfamily number); this is the basic information for the posting operation,
Other catalog-type data enable the EDPE to exercise a form of "class know-
ledge" in the analysis phase of management, e.g. some codes that denote
expendability and repair (ERC), regulated items, class 27 items, and dated
items. All of these permit differential processing possibilities within the
computer. Finally, because shipping orders need to be written as a result of
2For more detailed discussion, see Chapter II.
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Table 3
EXAMPLE OF A CONSOLIDATED INVENTORY RECORD
FOR AN EDP MAIN BALANCE FILE
Fixed Indicative Information
1. Family Number )
Index Number
2. Subfamily Number
3. Stock Number
4. Peculiar- or Common-Item Code
5. ER Code
6. Dated-Item Code
7. Regulated-Item Code
8. Noun
9. Unit of Issue
10. Unit Pack
11. Cost
12. Cube
13. Weight
14. Procurement-Source Code
Weapon-System Summary Information (Repeated for each weapon)
1. Weapon Account Code
2. Requirement Level
3. Warning-Point Level
4. Allocation Level
5. War Reserve Level
6. Serviceable Summary
7? In Transit Summary
8. En Route Summary
9. TOC Summary
10. Reparable Summary
11. Backordered Summary
Location Information (Repeated for each site or base)
1. Account Number
2. Area Indicator
3. Next-Area Indicator
4. Date of Last Action
5. Stock-Control Level
6. Reorder Point
7. War Reserve Level
8. Serviceable In Transit
9. Serviceable En Route
10. Special Project Holdings
11. TOC (Awaiting Shipment)
12. Reparable (Awaiting Shipment)
13. Serviceable (If dated item, by date in site records only)
14. Obligation Account Holdings (listed separately for each
account held)
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action taken during transaction posting, such information as nomenclature,
cost, cube, weight, unit of issue, unit pack, and procurement-source code is
maintained on this master file. ??This enables the computer to generate
shipping orders that contain all the catalog information needed by the
recipients of copies. --
2. System Summary Data
In the remainder of this chapter, the term "stock status" will
appear often. Stock status is a number defined as serviceable on hand plus
serviceable in transit plus serviceable.en route, minus backordered.
Definitions and discussion of the items of the system summary data
a. Weapon Account Code
This is a number used to denote the weapon system or designated
accountable organization which "owns" the stock.
b. Requirement Level (RQL)
If the system stock status falls below the Requirement Level,
there will normally be sufficient time for management to replenish before
any critical level, e.g., Warning Point, is reached.
c. Warning Point Level (WPL)
A lower stock level than the RQL, the WPL advises the inventory-
control process that a certain degree of criticality exists for this stock
item. That is, when the system stock status is equal to, or lower than, the
WPL, rationing of materiel should begin. At the very least, long-range
requests of the routine-replenishment type ought to be backordered while only
high priorities are filled. As in the case when the RQL was reached, printed
notices to management alert it to the start of this rationing.
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d. Allocation Level (AL)
This is a second stage alert level. When the system stock
status is at or below the AL, management is again notified, and more severe
rationing begins. Only specified high-priority requests may be honored, and
others are backordered until the shortage is alleviated.
e. War Reserve Level (WRL)
This is an inviolate stock level which might reflect special
system holding for a particular unit only, or for a favored weapon. It
might conceivably be an unassembled kit and table stock held in bins with
normally issuable materiel to maintain a degree of 11freshness't in the stock,
as is necessary in the case of dated items.
f. Serviceable Summary
All of the stock which is in a ready-for-use status at any of
the system locations is counted, and this total figure is carried as the
Serviceable Summary Balance.
ary
g. In Transit3 Summ
A count of all materiel which is moving from one location in the
system to another location within the complex is recorded as an In Transit
Summary Balance. These are system assets which are to be available soon to
satisfy requirements. They must, therefore, enter into any analysis of
system-asset position.
h. En Route3 Summary
The sum of all materiel which is in shipment from outside the
system to a system location, e.g., a prime Air Force depot shipping directly
3For fuller discussion, see Chapters V and VI.
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to a WSSS, is noted in the En Route Summary Balance. In addition to differ-
entiating the accountability for the stock, this breakout also allows the
consideration as assets of the amount of an item on its way to system loca-
tions in the same manner as one uses the In Transit stock.
i. Backordered Summa
The existing backlog of all unfulfilled base-originated requests
to the storage sites is summed and carried forward in this balance.
J. TOC Summary
A count of all line items in the system awaiting technical order
compliance.
k. Reparable Summary
A count of all line items in the system awaiting repair. (Some
EDP systems may desire to count only those above base level.)
It is apparent that the summary data described above are essentially of
two kinds: 1) system-monitoring levels (b through e) and 2) system balances
(f through k). A discussion of each type follows.
The system-monitoring levels can be considered as guideposts which are
checked during each processing cycle. By comparing the system stock status
with the levels, clear-cut supply decisions can be made. For example, when
a shortage for a particular part exists in the system such that the system
stock status is equal to or below the WPL, but above the AL, only priority
requests are allowed to be filled. Another set of decisions involving
replenishment are determined to a large degree by the first three levels
(RQL, WPL, AL). When the system stock status is at or below RQL but above
WPL, there is normally sufficient time to replenish; when the system stock
status is at or below WPL but above AL, replenishment must be done with some
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urgency; and when the system stock status is below AL, early replenishment
is imperative. These levels must of course be changed periodically to
conform more closely to a change in the operational program of the weapon,
and the analysis criteria may vary with different categories of stock in
accordance with the desires of the manager. What can be assured to adminis-
trative echelons of inventory controllers is the uniform application of their.
policies, even though they may vary from line item to line item; for, once
a rule is specified for a given line item, all system locations are super-
vised to guarantee the satisfaction of the rules.
The backbone of any supply system is its record of balances. Those
listed in f through k above are those used in the Air Force today. At
present, quantitative reports of assets in transit between depots and bases
and between depots within the zone of interior are gathered only for the
Hi-Valu items. Although the need for such data has long been recognized,
they are extremely difficult and expensive to obtain. The maintenance of
the In Transit and En Route balances by the DPC should overcome many of the
difficulties and appreciably lower the cost of collection.
A few words need to be said here about the system Stockage Objective
(5.0.) -- the total quantity of supplies needed to meet issue demands for a
predetermined period of time. The S.O. is used in one of two ways; 1) to
measure system excesses (if any), or 2) to determine the quantity to be
reordered when replenishment is required. In the former case, the checking
for excesses is done periodically; in the latter, the RQL is checked in each
cycle, and the S.O. used if the decision is made to replenish. The S.O. is
obtained by a requirements calculation, periodically and when designated
levels are reached. An example is the Logistics Early Warning System (LEWS)
at SMAMA.
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3. Location Data
The DPC is the agent for keeping the records for all locations in
the system complex; therefore, the consolidated stock record must list, for
all these locations and for all possible conditions, the balances of stock
on hand. These balances include serviceable, reparable,-TOC, on-work-order,
and Defective Materiel Report (DMR) items. Further, any obligated stock,
such as 11F"f Account, 'IT" Account, and the like, requires an entry in the
record for any location holding such materiel. Then, just as there were
system entries for In Transit and En Route balances, so must there be
entries of this type in each of the location records. The need for this
information becomes apparent once it is recognized that management-review
procedures which are possible for the whole system, with the RQL, WPL, AL,
and the WRL available for comparison with the system stock status, can be
accomplished for each of the locations in the very same way. Of course, this
requires a Stock Control Level (SCL), a Reorder Point (RP), and a Minimum
Reserve Level (MRL) to be specified by management for each of the bases and
sites. Just as soon as the base stock status (computed with the same
formulas as above, but-not including base backorders) reaches the Reorder
Point of that base, a routine replenishment shipping order will be written
by the EDPE, thus relieving base supply of the burden of preparing the
replenishment requisition. At bases and at sites, only stock-locator
records need be kept, with only an approximate inventory indicated for each
item in stock. With each base action for all stock items being reported to
the DPC for posting to the consolidated record, it is possible for the DPC
to compute the SCL for these bases; furthermore, the individual SCL for each
location in the system can be set with due regard to the entire system supply
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of an item. For example, if adequate stock of a given item is on hand in a
storage site, the SCL of the bases may be arbitrarily increased over what
their normal consumption data indicate this number to be, a procedure which
reduces the probability of stockouts at the bases and, therefore, decreases
the incidence of high-priority requisition activity. Since the knowledge
of stock location remains with the DPC, the bases, in addition to protecting
themselves from unexpected stouckouts, are acting as dispersed stockage
points from which materiel may be repositioned, if need arises, by a DPC-
directed shipping order.
C. Main Balance Processing
In order to keep stock records "current,"" a period of updating must be
established and adhered to. The limitations to maintaining master files
current for logistical use should be well known to supply managers: files
purporting to contain identical data are scattered over many offices, and
little or no reconciliation is attempted among them; day-to-day require-
ments for using the files make it less likely that known revisions of the
qualitative type are posted until there is a "break" in the activity
requiring the file, e.g., the addition of a new substitute part number to a
substitution record; the necessity for going through ?tproper" channels of
communication for approval of revisions impede the prompt entry of changed
information. Keeping the files "currents" is also made difficult by the
steps involved in the use of the records: a task may be rather complicated,
as when one starts tracking down a suitable substitute part for a particular
aircraft application; processes may be time-consuming, as when ten thousand
actions must be posted daily to forty thousand different stock records; a
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particular activity may not be able to be accomplished in a desired time
because special rules may necessitate appeal to an authority higher than the
posting clerk who is using the records.
As regards MB processing for the weapon system, the proper use of
electronic computing and data-processing equipment will add more currentness
both to the keeping and to the using of the manager's records. This is due
to the large magnetic-tape storage capacities and the rapid rates of calcula-
ting and data handling. Nevertheless, some of the same factors which reduce
the "instantaneous responsiveness" of a non-electronic system of record-
keeping and management-review may inadvisedly be carried over to the EDP
system. For example, if the managing echelon is reluctant to impart to
computing equipment its routine decision rules, it may force the machine,
instead of the posting clerk, to halt an action which would make the informa-
tion in the files more current. Just as the clerk now appeals to higher
authority for approval, so the computer would have to reject a transaction
for management review.
It is important to stress that MB processing can be made to achieve any
desired degree of currentness, given enough computing machines, communication
links, authority in the EDP to make decisions, etc. Just what is practic-
able is limited by the usual factors of manpower, money, and mission obliga-
tion. In trading off between these factors, it is strongly suggested that
the following question remain uppermost in mind: How much timeliness is
really needed for the inventory-management and -review function?
There need be no exhaustive justification for requiring transaction
reporting from weapon-system locations in the case of centralized record-
keeping. The necessity is self evident: if the records must be kept, the
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updating data must be sent. How soon after the occurrence of an event,
which changes a balance at a system location, the notice should be dispatched
to the DPC is a question of timeliness and needs to be decided by manage-
ment. With regard to'how soon file information transactions ought to be
relayed to the DPC, it is more desirable to have the recordkeeping center
informed of these changes, insertions, and deletions even before informing
the system locations; the DPC records would then be a true reflection of
reality. The DPC might even act as the agent for dissemination of this
information to the using locations, since the DPC has the means of acting
as a translator between old and new information4 when time lags or errors
cause transaction notice inputs to be in the old information form, e.g., a
requisition for an item whose stock number had changed the previous month.
1. Types of Transactions
There are two types of transaction notices required by the DPC to
adjust its records to correspond with reality: 1) notices which indicate a
balance change, and 2) notices which indicate a file change. Each is
discussed in turn.
a. Change-Balance Transactions
1) Inventory Adjustment
The amount of materiel in any stock status may be adjusted
by an actual count to a figure different from that on record at the DPC. If
this is a Serviceable adjustment, the necessary reduction or increase must be
posted to both the Location and the System Summary balances, and, in the case
of a decrease, management review of the "stock status vs. levels"t will be
4
See Chapter II for fuller discussion.
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initiated. This will be automatic, regardless of where in the system the
adjustment is initiated.
2) Issues
Whether an issue of materiel at a system location is made
to "F" account, to FAK, to TOC, etc., or to a using operational unit, the
simultaneous double posting, i.e., decreasing one location balance and in-
creasing the other affected balance, will be made. If Serviceable materiel
is to be sent outside the system, the system summary totals will also be
decreased, again inaugurating a "stock status vs. levels" management review.
The presence of all system locations balances in a consolidated record
provides for an ease and speed of posting these events which, in itself,
provides the capability of maintaining complete records of all conditions of
stock that have a bearing on the related inventory-management problems of
requirements, optimal distribution of materiel, and financial accounting.
Since requirements must be computed by management, taking into account the
various uses of stock items, e.g., to support maintenance, FAK, tables,
normal wearout, and UAL, these balances appear on the consolidated record of
the MBF and require transaction reporting to be kept up to date.
3) Receipts of Serviceable Stock
Any stock entering the system from contractors or prime Air
Force depots must be posted to-the system's account; the proper entries are
achieved by having the consignee of the shipment send a notice of the amount
received to the_DPC. The System Summary balances, as well as the Location
balances, of both the Serviceable and En Route amounts are adjusted to
correspond to the number of items received, En Route being reduced by this
figure. In the event that this is an overshipment or an undershipment, this
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fact will be corrected by a notice from the Shipment Control function, 5
which would then cause the System and Location En Route balances to be
adjusted accordingly. If materiel is moving within the system, as in the
case of a shipment from a site to a base, the transaction notice the base
sends to the DPC will be posted as above, but the In Transit balances, instead
of the En Route balances, will be adjusted as above.
Requisitions
The action to be taken in answering requests from using
organizations, i.e., bases, contractual maintenance facilities, depot over-
haul points, etc., depends upon a number of factors. These may be enumerated
as:
a) the amount of issuable stock in the system relative to
the requirements of the system;
b) the mission category of the requesting unit or
organization;
c) the precedence rating of the requesting unit;
d) the need date for the materiel;
e) the time of arrival of the requisition at the DPC.
It is important that time of arrival be discussed first in any procedure
for the processing of requisitions by a data-processing procedure in which
EDPE plays a dominant role.
It is basic to the Air Force supply procedure for answering requests for
materiel that "high priority" requests be processed in shorter periods of
time than are allotted to "low priority" and ttroutinett or "replenishment"
See Chapter VI for fuller discussion.
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requests. Air Force Manual 67-1, Volume XIX, defines the Air Force depot
stock levels which must be maintained as insurance against requisitions of
the Immediate- and Intermediate- and the Routine-need categories; however,
both Immediate- and Intermediate-need requests for mission categories 1, 2, and
3 users are allowed to draw upon depot stocks to zero days of materiel, and
all other requests may draw upon depot stocks to a 30-day retention level.
If action to fill a request is initiated as soon as it arrives at the DPC,
on an on-line basis with respect to time of response, then, in the sense
that each request is getting the preferential treatment desired for the
"high priority" demands, the priority system fails to protect the higher-
precedence user. This is particularly true in view of the lack of dissimi-
larity in the retention levels for different priorities of requests, e.g.,
down to 30 days for Priority 15 and Priority 4 requests. In the situation
where critical items, or items which are in system short supply, are being
requested, adhering to the above time- and retention-level criteria tends to
cause high precedence units within operational commands to be relatively
unprotected.
Begging the arrival-time question, rules for the DPC to follow in answer-
ing requisitions can be set down. In any given interval of time, a ranking
of existing requests is possible so that the currently most urgent need will
be.filled, and then the next, etc., until all outstanding requests are either
filled by the writing of a shipping order, backordered, or otherwise indorsed
in accordance with the amount of issuable materiel in the system.
5) Shipping Directives
Allowing for management-directed shipments of materiel on an
exceptional basis, Shipping Directives are input to the MB processing operation.
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The Shipping Directive is a method of bypassing the ordinary rules of
responding to requisitions, as described above, thereby providing flexibility
to materiel management in extraordinary circumstances. If, for example, a
request for an unusual amount of materiel is made by a base because of an
urgent modification program, the normal processing procedure would be to
monitor this request and reject it, setting it aside for managerial inter-
vention, even though the proper justification coding appears on the requisi-
tion, If the request is approved, the Shipping Directive is written, and
then reentered into the data flow and,posted to the proper consignee and
consignor balances without further analysis. Filling requests for Air-Force-
regulated items may necessitate this sort of human intervention into auto-
matic management techniques and may result in the writing of Shipping
Directives for approved cases.
)Action Reversals
Any transaction may be reversed for valid reasons. Those
that can be successfully intercepted will be reverse-posted to the master
records; where the reversal cannot be accomplished, as in the case of a
requisition already filled, the reversing location must be notified by EDPE
output to cancel the Reversal. Without reversal capability, clerical errors
and those of the electrical communication variety would be difficult to
correct when detected.
b. Change-File Transactions
1) Insertion, Deletion
Allowing for communication with the EDPE to expand or contract
the size of the master files makes the maintenance of these files just
another processing step to be accomplished concurrently and routinely with
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other transaction-"posting. Once effected, the records are in the status
desired by the manager at the controlling site; the DPC-can now become the
focal point for disseminating this information throughout the system.
2) Stock-List Changes
A form of information change which affects only a part of
the Fixed Indicative Data in a master record is the Stock-List Change. For
example, an item may be declared Hi-Valu by the publication of a new TO,
which would necessitate changing the cost-category coding in the MBF. Since
these data in the file are deemed necessary to accomplish a complete list of
desirable logistical actions, e.g., Stock Balance and Consumption Reports,
differential processing for differently coded items, mode of transportation
scheduling, etc., Stock-List Changes are a vital transaction input for
maintaining a current set of records.
The stock number itself is a field of information which is subject to
change, either in-the form of a consolidation with another existing stock
number, or a complete modification, as in the case of the introduction of
the Federal Cataloging process. The entire Federal Supply Classification
(FSC) renumbering, with the use of individual Stock-List-Change transaction
inputs to the information flow of the DPC, becomes a very orderly, exceedingly
simple, process, which is easily monitored by the Classification function6
of the DPC to assure compliance at all using levels in the system. As in the
case of the Insertion and the Deletion transactions, the "as of" date of the
stock-number change becomes the day on which all activity is recorded against
the new number merely by entering the single transaction into the processing
6See Chapter II-for fuller discussion.
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operation at the start of the processing cycle for that day. There need be
no suspense file or any other form of interruption to normal logistical
activity during the changeover..
3) Level Changes
Changes in system or base requirements are transmitted to the
records in the form of corrected monitoring levels. If the system stockage
objective for a part changes, the Requirements Level, if not all the system
monitoring levels, would be adjusted to this change. Similarly, bases may
desire to adjust their Stock Control Level. As a management-initiated input,
level changes enter the processing cycle, and, instead of a posting action
to the MBF, a replacement of the old by the new levels takes place.
A word about requirements computation is apropos, since the management
monitoring levels are no more than a reflection of the gross system-wide
requirements for each item. At the instant that these requirements are
incorporated with the stock records for each item managed at the DPC, the
computation of either the net deficiency that exists in the system or the
excess stock of an item is made, using the up-to-date summaries of system
stock in all categories as brought forward in the records under System
Summary Data. Management is advised of forthcoming shortage under the
condition, for example, that a deficiency exists which is not to be over-
come by contractual due-in; outstanding due-ins may call for renegotiation
in the case of existing overages if there exist maintenance or procurement
contracts that are current. Any Level Change transaction automatically
triggers this type of analysis, which provides management the use of
inventory and associated records as a true management tool, and not merely a
set of records to be brought up to date as an end in itself.
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c. Requests for Information
In any large inventory-management system, a means must be
provided for interrogating the master files in order to view bits and pieces
of relevant data not available soon enough, if ever, from a routine report.
A Request for Information is a transaction input to the processing cycle
that defines, by appropriate coding, the specific type of data required as a
printed listing or a typewritten notice. Without any more effort than it
takes for the machine to post an issue of an item out of stock at a base,
this transaction provides to the managing echelon an adequately rapid
answer to any query it may have with regard to any of the information in the
set of DPC consolidated records. Stored on high-speed electronic or magnetic
devices, this information is not visible, except on demand through the use of
the Request for Information. Where this random inquiry of a file on an
infrequent basis replaces the regular printing of a complete report, which
is to be referred to on an infrequent basis, the ability to make a Request
for Information serves management well and relieves what could be an
unnecessarily time-consuming burden on the DPC.
2. Main Balance Outputs
As mentioned previously, the outputs of the Main Balance processing
may be reports or action notices. A discussion of each follows.
a. Reports
1) Main Balance File (MBF)
The MBF is considered a report even though it is rarely, if
ever, put out in its entirety; parts of it are reported, e.g., when answers
to Requests for Information involving the MBF are given or when Stock Balance
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and Consumption Reports-are issued. In a very real sense, therefore, the
MBF is a continual report to management.
2) Transaction Register
Each input to the MB processing function will generate at
least one output, i.e., an entry to the Transaction Register (TR) for the
processing cycle. To be sure, additional information might be placed on
this original input, in order that the aggregated TR, when it is published
for some period longer than one cycle, may show a history of transaction
processing for each of the locations in the weapon system. In the case of
the issues, receipts, etc., where balances have changed, the new balance
caused by posting is added to the transaction before it is placed on the
TR. In the case of requests for materiel, action coding is added to the
original input to indicate the DPC action in response to the request. For
the entire set of transactions which never change balances, DPC control
procedures might dictate the desirability of endorsing the input before
entering it to the TR. In any event, there ideally exists a traceable
line of actions starting with the input, indicating the action taken, and
ending with a TR for each cycle, which is available to a manager either in
separate-cycle or -in periodically-aggregated form for a number of cycles,
and which gives him a picture of the business he is doing by item, by
location, by condition of stock, or by any significant form of breakout.
3) System Short-Supply Notices
Previously, in discussing the information contained in each
consolidated stock record on the MBF, the use of the system monitoring levels
was described and mention was made of the warning provided to indicate
impending, or existing, criticality within the system for given stock items.
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Essentially, the MBF is being used in the manner indicated under the
description of the file itself as a report, but this is such a significant
use, and is so much an intrinsic-part of the inventory-keeping and manage-
ment-review function, that special emphasis must be given to the System
Short-Supply Notice.
The System Short-Supply Notice is written as soon as a -review of the
stock status against any of the system monitoring points, i.e., the
Requirements Level, the Warning-Point Level, the Allocation Level, and the
War Reserve Level, indicates that one of these points has been reached.
This output for management review can include:
a) Serviceable Stock on Hand in the System;
b) Stock In Transit in the System;
c Stock En Route to the System;
d Backordered Summary Systemwide;
e Each of a), b), and o) for Each Location in
the Systems
f) A List of All Monitoring Levels for the System.
This information, in conjunction with both consumption reports and the
due-in schedule for the affected item, accomplishes three things: (1) gives
the complete set of data required for expediting procurement, maintenance
or shipment from prime sources in order to overcome these shortages,
(2) provides definite knowledge of the stock status at each location, thus
allowing for repositioning stocks between locations to meet emergency needs
pending arrival of due-in materiel, and (3) allows for a recomputation of
the monitoring levels to determine if, indeed, a shortage exists under the
demands of the latest known programmed requirements.
If the item which reached a monitoring level was in a subfamily, then
the Substitution and Allocation function,7 would have written individual
7See Chapter III.
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transactions to the MB function to have the Short-Supply Notice written out
for each member of the subfamily. In this case,, the notice also lists a
summarization in each of the above six items in terms of the entire sub-
family, i.e., Subfamily Serviceable Stock on Hand in the system, Subfamily
Requirement, Warning-Point Level, etc. Because of the nature of a subfamily,
wherein all items are completely interchangeable for all applications, it is
only by compiling a report on the total subfamily assets that the manager
can be provided with a clear asset-position picture.
Occasionally, these notices will be generated when one item falls below
a monitoring level while the total subfamily stock is not in critical posi-
tion. The following table is indicative of such a situation:
Stock Status Monitoring Levels
(OH + IT ? ER - B0)8 RQL WPL AL WRLB
Subfamily Total: 49 36 18 6 2
SIN AAA 31 16 9 3 2
SIN AAB 10 9 4 1 0
S/N AAC 8 11
5 2 0
Only S/N AAC has reached a status which ostensibly requires management
review; the RQL is 11, and there are only 8 available in the system. The
protection provided by the ample store of AAA parts, which are interchange-
able with AAC, leaves the system in good operating condition, i.e., the
subfamily total system status shows 49, while the first management-review
level, the RQL, is only 36.
8Abbreviations: OH - On Hand Balance, IT - In Transit Balance, ER -
En Route Balance, BO - Back Order Balance, RQL - Requirements Level,
WPL - Warning Point Level, AL - Allocation Level, WRL - Warning Reserve
Level, and S/N - Stock Number.
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In this case, it might be desirable for the computer to suppress the
printing of any System-Short-Supply Notice, since the manager may consider
the entire subfamily to be a single stock item for the purpose of making
distribution decisions. In most cases, the system subfamily levels pro-
vided by management become more meaningful if an alert for stock-control
purposes is sounded only when one of these has been reached, regardless of
the asset position of-an individual item in the subfamily. In these cases,
the subfamily levels provide the protection formerly provided by the
individual-item levels.
A special case of a System-Short-Supply Notice-is that of the system
stocks for a part falling to zero, regardless of the monitoring levels
involved. The use for a notice in this case is to rid the system of
records for those items for which there is no corresponding stock.
4) Initial Backorders, Expiring Backorders
Under the priority rules set down by the manager, certain
requests for materiel may have to be backordered pending an improvement in
the stock status for the item requested. When this action is taken by the
DPC, notification to the base will occur (see below), and the request will
be written on the initial Backorder File. At some future time, and after
having been merged in order of priority and days of need with previous
backorders for the same item, the backorder file is reprocessed, and an
attempt is made to fill these requests. The notification of a receipt of
this item into the system may be the trigger which initiates the calling up
of outstanding backorders.
Because requisitioning does not halt when backordering on any item
starts, it is necessary to survey the Backorder File to update the
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priority, insofar as the number of days of need is a factor in determining
the priority of a request. This assures that current requests of the same
priority are not filled before-an old backorder that is due for a priority
updating.
As a by-product of this updating process, the backorders which progress
out of the Intermediate-need category into Immediate-need (by virtue of the
fact that the numbers of days to their need date has become less than eight)
are listed on the Expiring Backorder File, allowing up to seven days for
expedite action or cancellation by the appropriate management monitor.
This regular reminder points out the really troublesome items of the inven-
tory and is a forceful method of assuring that action is being taken on
items which really require managerial interest; the others, routinely
processed by the electronic computer, require no exceptional concern.
b. Action Notices
1) Short-Supply Triggers
A companion action to the System Short-Supply Notice may be
required under conditions which make impossible the publication of all the
information listed as management-review output without calling on other
files in addition to the MBF. Such is the case, for example, if the due-in
portion of the master files is independent of the inventory assets at each
location and is maintained on a separate management basis.
The greater part of any master due-in file is a long-range projection
of anticipated receipts. A short-range extraction from this file into a
working file to be used in evaluating the asset position for a close-in
period may be desirable; however, when the total asset picture has to be
known to a manager, the inventory holding plus in transit plus long- and
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short-term due-in data must be assembled in a consolidated publication.
The Short-Supply Trigger is written at the time the Short-Supply Notice is
created. The Short-Supply Trigger is used as a transaction input to cause
a report to be printed from each master file that has any-management infor-
mation which must be added to the Short-Supply Notice to complete the asset
picture. When management data are scattered over a number of functional
master files, a Short-Supply Trigger is required to create a consolidated
report for management review.
2) Backorder Notices, Cancellation Notices
In the process of backordering a request for materiel, a
document is written by the EDPE for transmission back to the originating
base or organization. This Backorder Notice is the only indorsing document
that need be returned to the requisitioning organization unless a manage-
ment-directed Cancellation Notice is issued for a portion or all of a
particular request. Any other indorsement, such as extracting materiel
from a prime commodity depot, requires that the action taken on the requisi-
tion be communicated from another agency. Of course, if the shipment will
be made from a system organization, an advanced shipping document will be
sent by the shipper. The interest of the system is served by providing a
closed-loop procedure in the requisitioning cycle, and not by providing
for allow of paper through the system at every handling station. Therefore,
the requisitioning organization receives either (1) a Backorder Notice,
(2) a Cancellation Notice, or (3) an advanced copy of a shipping document
from the system organization, or alternatively, (4) some notification from
the organization to whom the original request has been signed over. Thus
informed as to the disposition of its request, the base supply organization
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has ample information to plan its action, and adequate control is provided
at each point of responsibility to either monitor the activity required to
ship the materiel where it is required, or to tell why that is not possible.
3. Shipping Orders
Perhaps the most significant action-notice product-of the inventory-
control and management-review function is the Shipping Order. This is the
document issued by the DPC, under the authority of the manager, directing
a storage site, contractor or other location storing or using system
materiel to effect a shipment of a specific quantity of a stated item to a
designated consignee in such a manner as to arrive before a given date. Such
entries as the date of need at the receiving point, the quantity to be
shipped, and the consignee, are either given with the original requisition,
if the Shipping Order is in answer to a base-originated request, or are
available from the basets portion of the master stock-number record, if the
Shipping Order is a DPC-initiated routine resupply. However, an extremely
important entry on the Shipping Order is the consignor, the choice of which
is made from MBF data.
The problem of choosing a consignor for an isolated shipment of materiel
to a given location from an assortment of possible shipping points can
assume various degrees of complexity dependent upon the numbers of factors
which are determined to-be significant in the decision process. Many of
the basic factors in the decision are purposely part of the consolidated
master record of the MBF. The quantities on hand ready for shipment at
each of the possible shipping points is important and is part of the MBF.
A shipping-area pair of indicators which ranks each of three possible
storage site locations in a preference order to each base location is also
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a part of each base record in the MBF. If the decision rule in selecting
a consignor is limited tot
1) Select the area storage site if any stock is available,
then select the next-preferred storage site, and, as a
last resort, choose the last storage site;
or, if the statement on consignor choice is given as:
2) Always choose the area storage site, unless excess
stocks exist at one of the other sites, in which
case, choose that site;
then the assignment of shipping source is clearly a function of the Main
Balance posting process. The master record, which contains all the necessary
information for selecting from among the possible consignors, also contains
the consignee data with which to set up in transit amounts and in every
other way complete the posting and preposting.required with every Shipping
Order preparation. Hence, it is the relatively simple set of rules,
primarily the limitation of the choice of consignor to the storage site only,
which makes possible the filling of a requisition immediately simply by
considering the inventory balances and appropriate codes contained in the
The decision process may be augmented with other criteria, e.g., when
base-excess stocks of an item are made available for redistribution. Then
the rule which may be desirable in filling requests for materiel from a
base might be as follows:
3) Select the area storage site if any stock is available,
then any excess stock from any other base in the same
area, then-the next-preferred storage site, then any
base in that area having excess stock, etc.
Insofar as the rules set down for assigning the consignor do not embody
optimization techniques for choosing between alternate modes of transporta-
tion or ideal lot size of shipments, analysis of the consolidated master
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record should produce a reasonably appropriate consignor for any required
shipment.
Shipping orders can result not only from answering a request for
materiel submitted with proper priority by a base, but from routine-replenish-
ment needs at a base as well; this replenishment is automatically triggered
at the DPC when the reorder level is reached in the course of transaction
posting and or preposting. In this case, the same procedures as listed
above may apply, or, if desired, differential processing action may be
taken. Since the reorder quantity is a factor maintained in every base
record in the consolidated master record, and the "days of needtt is known
for replenishment needs, the..data processor, in effect, creates a request
for the routine replenishment. Perhaps the choice of consignor for this
type of shipment is limited to in-area storage sites only, in which case
the EDPE is limited, in its analysis, to checking the availability of
stock at this single location only. However, whatever the rule may be, if
the Shipping Order is written, i.e., if a backorder does not result from
this analysis, it will be completed as soon as the need is made known to
the system. This constant surveillance of stock levels by the EDPE, and
prepositioning materiel for expected needs, will reduce the system-wide use
of priority requisitioning by bases.
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Chapter V
A. Introduction
This discussion of the "Due-In" function1 considers its relationship
with the other functions, the reasons for maintaining Due-In records, and
the subfunctions that it comprises. The discussion is applicable to moat
EDP systems regardless of their magnitude or method of implementation.
The Due-In function is concerned with maintaining current records
of items that are on order from suppliers, contractors, and other Air
Force activities to the various stockage,locations within the system.
This function encompasses more than "Procurement Status," which is used
presently at the depot level to identify the records of material due in
from contractors only. A weapon system manager has items due in from
depots and from contractors in his Due-In file; these items are from
outside his EDP system although not necessarily outside the Air Force
system. Similarly, the property class manager will have items due in
from the maintenance operations as well as from contractors in his Due-In
file.
The Due-In function can be thought of as occurring between the time
when the supply manager initiates a request for new procurement or triggers
the repair of reparables and the time when notification is received that
the materiel has been received at the stockage point or that a shipment
record has been entered . in the Shipment Control file.2 The Due-In function
See Figure 4, Page 88 for logical block diagram of the Due-In function.
See Chapter VI for fuller discussion.
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Figure 4
LOGICAL BLOCK DIAGRAM OF THE DUE-IN FUNCTION
Transactions:
Purchase req. & orders
Amendments & changes
Notices from shipment
control
Backorder, extractions,
etc.
Request for information
Non-matched trans.
Is transaction a
new addition to
the file, e.g.,
P.R., P.O.
I Yes Error:
Kick out
Prepare new for re-
record for Isearch
insertion in by mgmt.
master file r---
Insert new
record in
master file
Send
action
report
to file
Match transactions
to appropriate
master record
Matched
Is this an action
type transaction
affecting master
record
Adjust record to
reflect action &
prepare report of
action taken
Check for discrep-
ancies & prepare
report of discrep-
ancies
For action:
send report
to mgmt.
Master file of
open orders and
requisitions
Non-matched master records
1 Periodically
I as required
I
Prepare
report of
infor-
mation
requested
Check record for
delinquent orders
& prepare status
reports & delinquent
reports
Send report to mgmt*
for action
Send report
to request-
ing function
e.g., S&A,
MB, other
For information:
send report to
MB function
Return updated master record to file
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must furnish on-order information to the requirements function so that
meaningful net requirements can be calculated. The Due-In function must
also receive the same receipt information as the MB function since the
latter periodically requires information from the former. This shows a
specific detailed tie-in at each end of the operational sequence. This
sequence is described in more detail.
B. Purpose and Need for Due-In Records
The necessity for keeping the records of on-hand balances of materiel
at various stockage locations is always recognized, while the maintenance
of timely and accurate records of the on-order status of the materiel
destined for these same locations is often ignored. If the picture of the
stock position is to be complete, proper records of the on-order status
records must be maintained.
It is recognized by the Air Force that the job of maintaining accurate
and timely records of due-ints has not been accomplished effectively in
the past.3 With the early prospect of using EDPE for inventory control,
an effective Due-In operation becomes possible. Because the Due-In function
is both complex and necessary to the other functions, it must be performed
on EDPE along with them.
An important part of the Due-In function is the generation of reports
for the various levels of management. As an example, when the requirements
function computes the gross requirements for a part over the next time period,
the result must be adjusted both by,the assets on hand and those due in.
If the Due-In records are inaccurate or not available, the procurement for
See Air Force Manual 67-10.
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the next time period will be in error. This type of error must be eliminated
in order to produce meaningful net time phased requirements. Further,
when the scheduled deliveries shown by the Due-In records do not arrive
at the stockage points on time, the Due-In function informs management of
the impending short supply.- When suppliers are too far in advance of the
due date, the resultant early shipments can cause a critical shortage of
storage space. The Due-In function informs management so that possible
warehousing strain on the system can be averted.
C. Due-In Subfunctions
The Due-In function comprises three subfunctions: 1) recording
original requirements schedules, 2) processing transactions affecting
the original requirements schedules, and 3) preparation of reports for
management. A detailed discussion of each follows:
1. Recording Original Requirements Schedules
The requirements schedules that are provided to the EDP system are
in nne of two forms: 1) a copy of a purchase request to procurement to
purchase the item from contractors -- in the case of the property class
management, or 2) a copy of a requisition on a property class depot -4 in
the case of the weapon system management. In either case the Due-In
record is established from the source data immediately as these data are
originated; this enables the Due-In reports to reflect information cor-
rectly for all users. The pertinent information about each order must be
recorded so that it is readily accessible, i.e., it can be updated easily
and requires few manhours to make it available to management.
The information to be retained in this file will vary to some extent
with the limits of the particular EDP system to be served; there are, however,
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certain basic elements which must be recorded in any Due-In records
(1) Identification number and/or name of the item.
(2) Total quantity of the original order, as amended.
(3) Scheduled quantities and dates for specified
locations.
(4) Document identification number for internal
and external communciations. --
Other data, such as unit price, ledger account, mode of transportation,
etc. may also be included.
2. Processing Transactions Affecting Original Requirement Schedules
The original requirements schedules are changed by two types of
transactions: 1) amendment-type and 2) action-type.
a. Amendment-type
The original record is usually subject to additions, corrections,
and deletions before the materiel on order has been completely delivered.
The change of the record from a purchase requisition to a firm contract
record is one example of a normal addition of pertinent information.
Adjustments to the original quantities and/or to shhedule dates may
occur because 1) the entire program for which the requirements were com-
puted has been altered, 2) the same program may be in effect, but the usage
rate for the item has changed due to an undetermined cause, 3) the source
of supply has been unable to meet the original delivery schedule or
delivered more than originally anticipated, or 4) an error has been corrected.
It should be emphasized that the volume of these changes is likely to be
considerable. Under some circumstances an unprocessed backlog of amend-
ments may develop to the degree that the records cannot reflect the true
situation, and the quality of the information obtained from these records
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would necessarily be-lowered. Therefore, the amendment of schedules must
be treated with the same importance as the establishment of the original
records.
b. Action-type
Given an initial accurate record in the Due-In file the posting
of All subsequent action-type notices, e.g., receipt of the items at
stockage locations or the return of items to the source of supply, becomes
a straightforward bookkeeping job. Much of the information furnished to
management from the Due-In operation is generated as a result of the
routine review of the Due-In file during this posting cycle. Many of
the discrepancy-type situations can be detected only when an action is
posted to the records. For example, an overshipment can be determined
only when receipt of the overshipped items is posted. Another example,
when there is an attempt to post a receipt action notice to a missing
record, the EDPE refers the discrepancy to the attention of management.
This type of information, which is available as a by-product of the
normal posting cycle, is referred to as "cycle reports" and is discussed
below.
It should be pointed out that the volume of discrepancies grows
considerably when the preceding subfunctions, i.e., the recording--of
information and the processing of amendments to the record, are not
accomplished accurately or on time. It must also be remembered that these
discrepancies may necessitate diagnostic action on the part of some individual,
since EDPE cannot do as efficient a job of diagnosis in many cases.
3. Preparation of Reports for Management
The product of the Due-In operation is information furnished to aid
in management decisions. This product is of three types: 1) cycle reports
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2) periodic, or recurring, routine reports, and 3) reports answering
specific requests for information. Where applicable, the frequency
of reports and the time allowed'>for response to requests is included
in the discussions below.
a. Cycle Reports
Cycle reports note the occurrence of any situations concerning
the Due-In records. These are recognized during the normal posting
operation and may be either the completion of an order due to receipt of
the last shipment, the overshipment of-the delivery schedule or of the
complete contract, or a receipt action notice which cannot be matched to
an order. These reports require some type of action by management. In
most cases feedback information will be required in order to correct
discrepancy situations. Usually, the information contained in the cycle
reports requires some positive action by someone outside the record-
keeping operation. It is assumed that any corrective action will be
transmitted to the EDPE to be reflected in the records.
The frequency of--the operating cycle for the Due-In function is
contingent upon management's decision as to how soon it wants to take
action on a short supply notice issued by the Main Balance function .
For instance, if management decides that it wants to act on short supply
notices by the end of each day, the Due-In function must provide the
necessary up-to-date due-in data, i.e., the Due-In function would have
to have a one-day operational cycle. Where there is no need for the short
supply notices to be acted upon within a day, the operating cycle of the
See Chapter IV.
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Due-In functions then becomes dependent upon such factors as volume of
due-in transactions, EDPE constraints (storage capacity, speed, etc.),
and timelag between date of receipt of shipping order by DPO and actual
shipping date.
b. Periodic Reports
By definition the only information included in the cycle reports
pertains to those records that have some action during the operational
cycle. At less frequent intervals all records in the file must be examined
and reports furnished to management. These reports could include such
information as 1) each record, 2) selected records, and/or 3) summaries
thereof, e.g., current undelivered balance, quantity behind schedule by
some time periods, next scheduled delivery date and quantity, or quantity
due in within the next ninety days. This type of information is current
as of the time prepared and can be sufficiently accurate for a period of
time determined by its usage. For example, the quantity due in within
the next ninety days would remain the same for one month, since most deliveries
are scheduled in monthly increments.
Since periodic reports are, for the most part, status reports, the
frequency with which they should be prepared is dependent upon the magnitude
of the status changes and, more important, the effect of these changes
on the usefulness of the information presented. For example, in a report
which presents the behind-schedule information about due-ints scheduled
monthly, the status picture will not be any ttworsett (further behind schedule)
until one month later. The only change in this information during this
month might be that it will be ttbettertt (some of the delinquent materiel
has come in). In this case it does not seem that much could be gained by
providing the behind-schedule report more frequently than monthly.
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c. Special Reports
Certain due-in information, not included or not current enough
in the regular reports, is often'required by management. An excellent
example of this is the case where information is needed because the balance
of an item in the system is critically low. Before the manager can decide
on the proper course of action, he must know of the complete on-order
position of the item at that time. A special report will show the
quantities due in to each of his storage locations by specified dates
from each of the sources of supply. Given this position, he can decide
whether to expedite a shipment into the system, place an additional order
with a source of supply, or divert a shipment to a different location.
The situation for items in extremely long supply also requires special
attention. In this instance, before the manager can decide the source of
supply from which he must cancel or delay shipment, he must have the com-
plete due-in information. There are other situations which will require
that special reports be prepared from the Due-In records, but management
should be made aware of the fact that special reports are not a free. commodity
to be asked for merely because they can be made.
It is most desirable in terms of EDP efficiency and convenience to
furnish the special reports at the same frequency as the cycle reports, i.e.,
at the end of each operating cycle. Any special information should not be
required with greater frequency then an operating frequency of once per day.
For example, the requirements people want to know the total on-order
quantity for a part or the manager needs to know the best source of supply
to expedite shipments. Each of these actions may at first seem to require
an immediate answer; in some cases, however, it may take weeks to place
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the order. Each situation must be studied individually in order to
determine the best overall policy for furnishing special information, and
the complete use of the-information must be studied to determine the
necessary EDPE response time. -
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CHAPTER VI
THE SHIPMENT CONTROL FUNCTION
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A. Introduction
This chapter presents the basic purpose of Shipment Control, and then
describes the necessary subfunctions. Shipment Control,1 as distinguished
from mere shipment recording, is the monitoring of the total file of
shipments, i.e., closing the records for completed shipments, initiating
action on delinquent shipments, and providing management with the desired
statistics on transit times and other relevant factors.
Although Shipment Control applies to the shipment of materiel in various
conditions (e.g., serviceables, reparables, TOCfs),the discussion in this
chapter mentions only serviceables. The stated principles, however, apply
to the other conditions as well.
B. Purpose and Need for Shipment Control
Since supply management cannot use those serviceables which it ttownstt
but which are being transported within the EDP system, it is important that
management monitor the movement of serviceables while they are being trans-
ported. For shipments going from the EDP system to some other system, it
is necessary to maintain accounting records and provide proper follow-up.
As regards those serviceables coming into the EDP system from other
systems, their status, until they arrive at their destination, needs to be
a part of the due-in record. This knowledge will avoid unnecessary
1See Figure 5, page 98 for logical block diagram of the shipment
control function.
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Figure 5
LOGICAL BLOCK DIAGRAM OF THE SHIPMENT CONTROL FUNCTION
Transactions
New shipping orders
Receipts
Reversals
Request for information
Non-matched transactions
Matched
Is transaction a
record of a new
shipment to be
added to file
Prepare new
'record for
insertion in
master file
Send notice to
Due-In function
for all ship-
ment transactions
except for DPC
originated ship-
ments
Error:
kick out
for re-
search
by mgmt.
Send action
report to
file
Match transactions
to appropriate
master record
Is this an action
type transaction
affecting master
record
Adjust record to
reflect action &
prepare report of
discrepancies
Check for
discrepancies
& prepare re-
port of dis-
crepancies
1
For information:
send report to
management
Master file of
open shipments
Prepare report
of information
requested
Send report to
requesting func-
tion,e.g.,
finance, require-
ments, procure-
ment, others
For action:
send report to
MB function
Return updated master record to file
I
Check record
for delinquent
shipments &
prepare delin-
quent shipment
report
Send report
to mgmt. for
action
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redistribution of stocks or overstatement of requirements because service-
ables in shipment were not considered.
While shipment control is being accomplished data accumulate that can
be analyzed. If more shipment control data need to be generated for
analysis, they can be obtained at little extra cost. This will be explained
in two sections: 1) control of three classes of shipment and 2) accumula-
tion of analysis data.
1. Control of Three Classes of Shipments
a. From In-System to In-System
The shipment of materiel from one location within the system to
another location within the same system is defined as "in transit." It
involves serviceables already "owned" by (on the stock record account of)
a stockage location within the system. While the materiel is still service-
able in the technical sense, it is no longer serviceable-on-hand materiel.
To illustrate this condition in terms of a DPC that maintains stock
record accounts for bases, assume that 20 each of Part A are being
shipped to Base X from Storage Site Y. The effect on the records is that
Storage Site Y has 20 less of Part A in category "serviceable-on-hand."
To balance this decrease in the assets of the total system, the assets of
the destination Base X must reflect the 20 parts in some manner. These
assets are defined "serviceable in transit" or simply "in transit," and
are part of the due-in record. It is obvious that the choice of a date for
transferring these assets from in transit to serviceable-on-hand will not
in the least affect the actual date when the Base X receives the assets and
can issue them to the users. For distribution of assets, the only important
date is the one when the assets actually go from in transit to serviceable-
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on-hand status. Since the records are being maintained and the distribution
decisions are being made centrally, the location of destination must inform
the information center as soon as possible that the assets have been returned
to serviceable-on-hand status.
b. From Out-System to In-System
The shipment of materiel from outside locations into the EDP
system is defined as "en route." This involves materiel that is shipped in
from some stockage location not included in the particular EDP system under
consideration. Examples of such materiel in en route status are: in a
weapon system context, materiel being shipped from a depot to a weapon
system storage site, or from a contractor directly to a base within the
system; in a prime property class system, materiel being shipped from con-
tractors to the depots of the system and directly to bases or, possibly,
materiel shipped to the bases and depots from maintenance overhaul locations
of other depots or contractors.
The need for monitoring shipments coming into the EDP system, even
though materiel is not available for issue until it is received at destina-
tion, is shown by a few illustrations. In the case where system-wide assets
of a part are low, and one particular stockage location is in short supply
requiring resupply from another stockage location, it is evident that any
materiel which has been shipped will be "lost" to the system during "Supply-
to-Supply" time. ("Supply-to-Supply" time is the elapsed time between the
moment when a supply organization in the system realizes the need for an
item and the moment the needed item becomes available at that organization
for issue.) If the manager knew, by means of the Shipment Control file,
that these same parts were already ?ten route" from the contractor to the
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base needing them, critically low assets within the system would not have
to be redistributed. In many instances, the assets due in to the system
are taken into consideration in distribution decision-making With regard
to serviceables in shipment status, it is obviously more useful to know
that they will be received within a given number of days, than to know only
that assets are due in within the next 30 or 60 days. The availability of
more precise due-in dates makes the operation of the EDP system more flexible
and more responsive to the requirements of the individual atockage locations.
c. From In-System to Out-System
Shipments from locations of the EDP system to locations outside
the system are called "outshipments.f" The necessity for control of out-
shipments for Hi-Valu items has already been established. There are two
good reasons for maintaining outshipment control: 1) pertinent information
is made available to process follow-up requests, and 2) it ensures Air Force-
wide accountability of the Hi-Valu items.
2. Accumulation of Analysis Data
In executing the Shipment Control function, the EDPE accumulates
accurate pipeline statistics for the movement of materiel via the various
modes of transport. Analysis of the information can provide a better know-
ledge of resupply times, an important factor in determining more realistic
stockage objectives for stockage locations. These statistics, since they
include overall Supply-to-Supply times, should prove much more useful for
distribution than those that consider only the transportation time. The
Supply-to-Supply time is the pipeline time that is really important in
determining realistic resupply standards for distribution decisions.
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C. Shipment Control Sub-Functions
The shipment control function comprises basically five sub-functional
1) recording of shipment data, 2) notification of receipts, 3) non-compliance
or reversal of information, 4)?file-monitoring, and 5) preparation of reports.
Each of these is discussed below.
1. Recording theShipment Data
Since one purpose of Shipment Control is to monitor all move-
ments of assets of interest to the system manager, the Shipment file must
include information about all three types of shipments mentioned earlier.
All shipments-to-be should be recorded and the file records (see Table 4)
should show the control date, the date when follow-up action is to be
initiated. This control date may be established by a simple rule or by a
sophisticated formula computed in the machine; the system manager sets the
rules by which this follow-up date is computed. Examples of the computation
of this date could be as complex as 1) 11f rom Storage Site X to Base Y, allow
20 days for routine, or 4 days for priority shipments of less than z pounds
gross weight, and 7 days for priority shipments over z pounds gross weight;"
or as simple as 2) "from any site to any base, allow 18 days." The control
dates are checked each operational cycle to determine which of the shipments
are delinquent and require action. This is discussed later in this Chapter.
The control date is computed for each shipment-to-be recorded in the
Shipment Control file.
In order to avoid undue emphasis on specific documentation, the standard
forms and names will be referred to only as examples in parentheses. The
information concerning shipments-to-be which is furnished to Shipment
Control is generated by two sources: 1) that internal to the DPC and 2)
that from outside the system. The DPC information comprises records of all
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Table 4
POSSIBLE ITEMS TO BE'INCLUDED IN THE SHIPMENT CONTROL FILE
Stock number of item being shipped
Stock number of item originally requested
Quantity shipped
Unit of issue
Transaction code
Document number
Date shipment requested
Date shipped
Consignee account number
Consignor account number
Weapon system designator
Priority
Date required at destination
Mode of shipment
Parking code
Condition code
Partial shipment code
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shipping directives to the various storage locations. These records normally
have a control date, computed for each record. The information from outside
the system (control copy of Form DD-250) would be key-punched (if not already
on punched cards) and verified before being put into the EDPE for the Input
Data Control2 function. Once the information is part of the Shipment
Control records, the establishment of the control date, as well as any
appropriate sorting, occurs in the course of the normal DPC operations.
2. Notification of Receipts
Acknowledgement of receipt of materiel at destination is not present-
ly required -- not even for Hi-Valu items. If the EDP system is one that
maintains the balances of bases at a DPC, an accurate record of the base
balances is needed for the DPC to be able to trigger automatic resupply for
its bases. This, in turn, requires that the DPC be notified of receipts by
the bases. It is obvious that a method of originating the receipt informa-
tion which provides a balance between the workload at base level and the
necessary degree of stock control will have to be developed. This is a
subject that is presently-being studied.
The receipts at storage sites or depots do not pose as large a problem
as that just described; by their very nature, they are capable of providing
the required receipt notifications to the DPC.
3. Non-Compliance or Reversal Information
As is true for the other functions, certain transactions, e.g.
shipping directives on sites, are preposted by the DPC. In the event of
the inability of the site to follow the prescribed action, the site will have
See Chapter II.
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to originate and transmit a reversal notice to the DPC. Also, in the case
of an error in a shipping directive, a notice of reversal can be used to
correct the error.
4. File Monitoring
File monitoring does more than update the file; it checks the master
file of shipping directives to determine the shipments that are possibly
lost or delinquent and therefore need to be brought to the attention of
management. This is a good example of the principle of management by
exception; the shipments which arrive within the expected time are processed
automatically and internally by the EDPE; only the shipments that need to be
investigated are brought to the attention of management.
5. Preparation of Reports for Management
The three basic reports from the Shipment Control function are:
1) Delinquency Listing, 2) Intra-Computer Discrepancy Reports, and 3)
Analysis Information.
a. Delinquency Listings
This report lists the pertinent information when a control date
has arrived without the shipment having been completed. This may have
occurred for one of the following reasons: 1) the destination location has
not forwarded the materiel-receipt list to the DPC, 2) the materiel has
been lost or delayed, or 3) errors in the receipt transaction, e.g. wrong
quantity or wrong contract number, have occurred. Where materiel has been
lost, it is important to dispatch another shipment without delay so that
stockouts or priority requisitions are avoided. Where the destination
location has failed to originate or has missent the receipt notice after
the materiel was received, the tracer would emphasize the delinquency and
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should aid in the maintenance of data discipline.
b. Intra-Computer Discrepancy Reports
All notices of materiel received which do not have a correspond-
ing shipment record in the file, or the shipment record-of which disagrees
with the actual quantity shipped must be 1'reportedf" to the other functions
of the EDP system so that adjustments may be made. This reporting can be
accomplished by internal communication in EDPE language. In addition, a
printed report of the discrepancy should be prepared for management, so
that it can take action to minimize recurrence of such errors. The fact
that these corrections are automatic by-products of the machine method is
an essential point in this regard. It is most desirable to have a system
that is not dependent on human initiative to deal with this kind of
exception.
c. Information for Analysis
1) Pipeline Data
The information on the Shipment Control record plus the
information on the receipt notice should include the necessary dates, mode
of transport, priority, etc., to provide all the raw data for exhaustive
pipeline studies. This-information can very easily be stored (possibly on
a magnetic tape) during the processing cycle. It should not, however, be
printed in its raw form since a statistical analysis by EDPE is the
desired goal.
The function of sorting, aggregating, or averaging the raw data concern-
ing the time to resupply stockage points does not necessarily need to be
accomplished as part of the Shipment Control function. The gathering of
the raw data from the routine operation of Shipment Control must be carried
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out as a part of this function and can be accomplished in the form suitable
for the desired analysis. The results of this analysis can aid in the
determination of rules or tables for automatically deciding which stockage
location should be used to resupply each particular base under normal or
priority conditions.
2) Information Requested by Operations Analysis
It is reasonable to assume that the management of most EDP
systems will have a group, whatever its name, that will perform operations
analysis. What directions the research of that group will take is not
readily predictable. The Shipment Control and the Due-In functions should
certainly be able to provide the necessary data for some of their research
projects. For example, the operations research group might want to deter-
mine the dollar value of items that became obsolete prior to having reached
the would-be issuing organizations. Part of the required data could be
obtained from the Due-In and Shipment Control functions.
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Although the various functions required for the control of Air Force
spare parts inventories have been discussed independently, the functions
are closely interrelated. Their relations to each other have not been
emphasized in this paper since the form of interaction is-dependent upon
the configuration of the EDPE employed and the consequent methodology,
a discussion of which was not the intention in this paper.
It is well to re-emphasize at this point that the functions discussed
in this paper pertain to the control of spare parts inventories, a subsystem
of logistics management. Other logistics management functions, e.g., require-
ments--calculations and master repair scheduling, are not directly part of
the data processing system for inventory control. They furnish inputs for
the inventory control system, and in turn utilize its outputs.
This paper has been concerned primarily with the functions of a data
processing system; it does not show how a specific system is to be imple-
mented. The examples of implementation which have been given illustrate
the various functions. They are not necessarily t"better" or less costly
than alternative methods.
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Bowden, B. V., Editor, Faster Than Thought, Sir Isaac Pitman and Sons,
Ltd., Bath, Great Britain; reprint 1955?
Eastern Joint Computer Conference, "Proceedings, Theme -- New Develop-
ments in Computers," New York, New York, 10-12 December 1956.
Electronic Business Systems Conference, "Proceedings," Los Angeles,
California, 10-11 November 1955?
Kircher, Paul, and Kozmitsky, George, Electronic Com uters and Manage-
ment Control, New York, McGraw-Hill, 1956.
Western Joint Computer Conference, "Proceedings, Theme -- Techniques of
Reliability," Los Angeles, California, 26-28 February 1957?
Wick, Martin H., "A Second Survey of Domestic Electronic Digital Computing
Systems," Aberdeen Proving Ground BRL, June 1957?
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I. Abbreviations
Appendix I
DISTRIBUTION, SHORT SUPPLY, AND BACKORDER POLICIES
AL -- Allocation Level
BO -- Quantity on Backorder
ER -- Quantity En Route
IT -- Quantity In Transit
WRL -- War-Reserve Level
2. Distribution Policy
Mission Days Storage
Priority Category Required Site System
1, 2, 3 0 - 7 WRL WRL
1 1, 2, 3 6 - 20 WRL WRL
2 4, 5 0 - 20 MRL AL
3 1, 2, 3 21 - 50 MRL WPL
4 4, 5 21 - 50 MRL WPL
5 Routine
Replenishment
MRL --- Minimum-Reserve Level
OH -- Quantity on Hand
Q -- Quantity Requested
WPL -- Warning-Point Level
MRL WPL
a. System Levels for filling requests (WPL AL WRL)
WPL No .Priority 3, 4, or 5 when OH - Q +IT +ER !5-WPL
AL** Only Priority 0 or 1 when OH - Q + IT + ER SAL
WRL No issue , except by special permission
b. Site Levels-.for filling requests (MRL '~: WRL)
MRL Only Priority 0 or 1 when OH - Q -!='MRL
WRL No issue , except by special permission
# Immediate Need.
**The Allocation Level is determined by summing the site MRL's and
adding an increment to cover average expected IT + ER.
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3. Short Supply and Backorder Policy
a. When writing backorders on backorder tape in the S&A and MB runs,
a special code will be written in the first position of the
record to indicate less than n'(yet to be defined) days on need.
This makes possible the listing of these backorders daily, using
the tape data selector, for expedite action similar to that for
an immediate need requisition.
b. Backorders are retained on the backorder tape without limit. They
are removed by cancellation only.
co Short supply notices, reflecting the system position, are written
the first time the following system equations are trust
S&A (subfamily) t OH + IT + ER - BO L
S&A (part) : OH + IT + ER 6- L
Main'Postingt OH + IT + ER - BO IS L
(where L equals RQL, WPL, AL, or WRL)
d. Short supply notices, reflecting the system position, are written
the first time the site OH 6 MRL and/or site OH 16 WRL.
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Appendix II
GENERAL PROCEDURE FOR HANDLING REQUESTS
Abbreviations Used on Chart (next page)
Q Quantity Requested
L Appropriate Level (ass below)
OMP Compare
S.F.S.S. Subfamily System Stock (on hand plus in transit
plus en route to sites)
I.S.S. Item System Stock (on hand plus in transit plus
en route to sites).
I.Q.H. Item Quantity On Hand
Priority 5 Routine Replenishment
Appropriate Levels
Priority of Request
0 or 1
System Level
War-Reserve Level
Allocation Level
Warning-Point Level
Warning-Point Level
Warning-Point Level
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Appendix II (Continued)
No
if necessor
Remainder
unfilled ? 2I'
16
CMP S.F.S.S.-Q
W/L 17
CMP I.S.S.-Q . No
W/L 18
CMP
I.O.H. W/Q
? 19
Substitution and allocation general
r-i I procedure for handling requests
o- I
CV H,O
H H Priority 0, I, 2, 3, 4, 5 requests
Priority 5
Appropriate
required
substitute ?
CMP S.F.S.S.-Q
W/L O3
Ok No
L- -
CMP I.S.S.-Q
W/L (
Appropriate
substitute 7
O
Interchangeable
(or requeste
item) ? 8
0
IYes
Last
substitute 10
CMP I.O.H.
W/Q
Ok
Priority
0,1,2?
Issue as much as
possible from
1 item 12
Backorder Remainder
(updating Yes unfilled ? No
14
request) 13
Interchangeable
Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043R001800180003-6
 Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043RO01800180003-6
RM-2013
11-14-57
-u7-
Appendix III
FAMILY RECORD FOR THE B-52/KC-135 WEAPON SYSTEM
Item No. Description
Number of Characters
Weapon-System Information
5.
4.
Blank
Length of entire record
Weapon-System Number
Family Information
10.
Family Number
5
-
Blank
1
11.
Number of subfamilies in family
2
12.
Number of different parts in family
2
13.
Date of last non-balance-change to family
4
-
Blank
1
14.
Address increment to Limited-Applicability
Information Table
15.
Number of blocks in Limited-Applicability
Information Table
Subfamily Information
19.
Identification Character
1
20.
Subfamily Number
1
Blank 1
1
21.
Address increment to next subfamily 2
4
22.
Address increment to first Part Number
4
23?
Short-Supply Notice Indicator
1
24.
Number of different parts in subfamily
2
25.
Unit of Issue
2
26.
Total subfamily quantity on hang and in transit
(sum of all 44's and 45's) 8
27.
Total subfamily en route to sites (sum-of all
46's)
8
28.
Requirement Level for subfamily
8
29.
Warning-Point Level for subfamily
7
30.
Allocation Level for subfamily
7
33.
War-Reserve Level
7
34.
Total backorders
8
35.
Master-Part-Number Code
1
-
Blank
1
31.
Number of applications
2
32.
Applications (Type and Model)
2 times number
of applications
lItem 21 is equal to the length of the entire subfamily record.
2Item 22 is equal to the length of the subfamily information record.
Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043RO01800180003-6
 Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043RO01800180003-6
Rai-2013
11-14-57
-118-
Item No, Description
Number of Characters
Part Information
39. Identification?-Character 1
40. Part-Number Code 1
41. Part Number 19
Blank 3 1
42. Address increment to next Part Number 4
43. Short-Supply-Notice Indicator 1
44. Quantity on hand 8
45. Quantity in transit 6
46. Quantity en route-to sites 6
48. Requirement Level 8
49? Warning-Point Level 6
50. Allocation Level 6
59? War-Reserve Level 6
51. Number of.required substitutes 2
52. Number of substitutes 2
55? Number of limited applications 2
52. Subfamily and Part-Number Code if required
substitutes 2 times number, of
required
substitutes
54. Subfamily and Part-Number Code of substitutes 2 times number of
substitutes
56. Address increments (from origin of limited-
applicability information) to limited
applications 4 times number of
applications
Limited-Applicability Information Table (Type, Model, Series, Serial Number)
71. Limited-Application blocks (each block consists
of an identifying character followed by "from" -
"fto'" inclusive - 10 characters each) 21 times number
of blocks
in table
31tem 42 is equal to the length of the part-number information record.
Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043RO01800180003-6
 Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043RO01800180003-6
The RAND Corporation, Santa Monica, Calif RM-2013
USAF Project RAND
ELECTRONIC DATA PROCESSING CONTROL OF AIR FORCE SPARE
PARTS INVENTORIES compiled by S. L. Pollack; Research Memoran-
dum RM-2013, November 14, 1957, Unclassified. 131 pp. incl. illus.,
references.
A description of the functional steps required to control Air Force in-
ventories of spare parts and an explanation of the exercise of these func-
tions in the context of an electronic data processing system, such as the
Air Force seeks to develop. The ways and means of applying electronic
data processing equipment (EDPE) to Air Force inventory control are
illustrated. This study may be of interest to management people who
are responsible for controlling spare parts inventories and to appropri-
ate specialists in such fields as statistical services, supply, and systems
development personnel.
?
The RAND Corporation, Santa Monica, Calif
USAF Project RAND
ELECTRONIC DATA PROCESSING CONTROL OF AIR FORCE SPARE
PARTS INVENTORIES compiled by S. L. Pollack; Research Memoran-
dum RM-2013, November 14, 1957. Unclassified. 131 pp. incl. illus.,
references.
A description of the functional steps required to control Air Force in-
ventories of spars parts and an explanation of the exercise of these func-
tions in the context of an electronic data processing system, such as the
Air Force seeks to develop. The ways and means of applying electronic
data processing equipment (EDPE) to Air Force inventory control are
illustrated. This study may be of interest to management people who
are responsible for controlling spare parts inventories and to appropri-
ate specialists in such fields as statistical services, supply, and systems
development personnel.
?
The RAND Corporation, Santa Monica, CaliE RM-2013
USAF Project RAND
ELECTRONIC DATA PROCESSING CONTROL OF AIR FORCE SPARE
PARTS INVENTORIES compiled by S. L. Pollack: Research Memoran-
dum RM-2013, November 14, 1957, Unclassified. 131 pp. incl. illus.,
references.
A description of the functional steps required to control Air Force in-
ventories of spare parts and an explanation of the exercise of these func-
tions in the context of an electronic data processing system, such as the
Air Force seeks to develop. The ways and means of applying electronic
data processing equipment (EDPE) to Air Force inventory control are
illustrated. This study may be of interest to management people who
are responsible for controlling spare parts inventories and to appropri-
ate specialists in such fields as statistical services, supply, and systems
development personnel.
is
The RAND Corporation, Santa Monica, CaliE RM-2013
USAF Project RAND
ELECTRONIC DATA PROCESSING CONTROL OF AIR FORCE SPARE
PARTS INVENTORIES compiled by S. L. Pollack; Research Memoran-
dum PM-2013, November 14, 1957. Unclassified. 131 pp. Incl. illus.,
references.
A description of the functional steps required to control Air Force in-
ventories of spare parts and an explanation of the exercise of these func-
tions in the context of an electronic data processing system, such as the
Air Force seeks to develop. The ways and means of applying electronic
data processing equipment (EDPE) to Air Force inventory Control are
illustrated. This study may be of interest to management people who
are responsible for controlling spare parts inventories and to appropri-
ate specialists in such fields as statistical services, supply, and systems
development personnel.
is
Declassified in Part - Sanitized Copy Approved for Release 2013/06/11: CIA-RDP81-01043RO01800180003-6