Evaluation of Alternative Price and Credit Policies for Spare Parts: Addressing Price Changes and Reliance on Credits

Abstract

This report documents research and analysis conducted as part of a project entitled Setting Standard (Non-Creditable) and Born-On Pricing for Reparables, sponsored by U.S. Army Forces Command. The purpose of the project was to (1) determine the potential impact of eliminating reparable credits and the institution of a single price for reparables that would remain in place from the moment the requiring unit obligates funds and (2) outline a newmodel for reparable pricing that would provide units with predictability in budget execution, make transactions become a normal supply turn-in transaction without concerns over credits, enable the supply chain, and foster commanders, leaders, and soldiers to focus on preparing for combat versus managing credits and changing prices throughout the year.

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Document Details

Document Type
Technical Report
Publication Date
Feb 14, 2024
Accession Number
AD1221344

Entities

People

  • Adam C. Resnick
  • Aisha N. Chesler
  • Candice Miller
  • Ellen M. Pint
  • Erin N. Leidy
  • Kenneth J. Girardini
  • Marygail K. Brauner

Organizations

  • RAND Corporation

Tags

Readers

  • Economics
  • Logistics and Supply Chain Management.