Research for Stochastic Processes

This paper considers the problem of optimizing the benefits to be realized from allocating resources in a stochastic flow process. The Naval resupply system is viewed as consisting of several processes, from the requisitioning, to the processing, to the transportation of spare parts. The time necessary for completion of any of the processes by any of the assumed homogeneous items is a random variable described by a distribution function whose parameters are functions of the budget at which each process is supported. Having delineated alternative budget levels and associated parameter improvements at each stage, the problem is to allocate a fixed budget so that the probability of completion for any item over the whole flow system before a given deadline is maximized. The solution to this problem is presented with specific reference to the Naval resupply system.