A PROPOSAL FOR REDUCING THE COST OF LOGISTICS SUPPORT,
Abstract
Deferral of procurement is distinctly worthwhile for some items. These are, for the most part, expensive spare parts which are few enough to be managed with considerable attention, and also of such a nature that spares consumption is almost certainly sure to be low during the phasing-in of new equipment. The savings indicated may be as high as sixty per cent of the total cost of expensive items under the present supply system, and undoubtedly exceeds thirty per cent of this cost. Since expensive spares consititute more than fifty per cent of the total dollar value of the supply system, the indicated savings are very substantial. The deferred procurement system does not result in a noticeable reduction of the effectiveness of the supply system if deferral is practiced just long enough to collect sufficient data to make a substantially improved forecast of future consumption. In the current study, this period was approximately eighteen months in length.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 23, 1957
- Accession Number
- AD0606369
Entities
People
- James W. Petersen
- Wilber Steger
Organizations
- RAND Corporation