PRICE INCREASE FACTORS

Abstract

Whenever a stock list item has not been procured for several years, it is expected that there will be some increase in the new unit price over the old acquisition price, particularly because of the increased labor and material costs to the manufacturer. Then the question arises: What reasonable increase in costs can the U.S. Navy Ships Parts Control Center (SPCC) expect on material that has not been procured for one year, two years, or several years. Two different approaches, one by historical data and the other by the cost index, have yielded approximately the same average increase: 4.6% vs. 4.9%. It seems reasonable, then, to believe that the real increase is approximately 5%.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Nov 18, 1963
Accession Number
AD0488284

Entities

People

  • J. P. Encimer

Tags

DTIC Thesaurus Topics

  • Acquisition
  • Coefficients
  • Computer Programs
  • Confidence Limits
  • Contracts
  • Data Science
  • Department Of Defense
  • Information Science
  • Inventory Control
  • Linear Regression Analysis
  • Materials
  • Military Facilities
  • Numbers
  • Operations Research
  • Periodicals
  • Regression Analysis
  • Standards

Readers

  • Computational Modeling and Simulation
  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.