The Impact of Rate Stabilization on the Air Force Industrial Fund Depot Maintenance Management System.
Abstract
In 1976, DOD initiated a policy of rate stabilization within the stock and industrial funds to cope with the problem of inflation. Rates and prices for the services and items consumed by the customers of the fund are established approximately eighteen months prior to the beginning of the fiscal year. The predetermined prices are 'stabilized' throughout the remainder of the fiscal year. Although rate stabilization was established to correct a problem, operation under rate stabilization has itself created several key management problems. First, by stabilizing prices so far in advance, the industrial fund managers have a very difficult time measuring cost against price as a benchmark for performance measurement. Thus, rate stabilization impairs the fund managers' ability to control costs. Second, several of the rate stabilization policies have taken away financial authority and flexibility from the fund managers, thus weakening their control over the fund. A comprehensive analysis of the impact of rate stabilization upon the industrial fund was performed by interviewing top level managers in the industrial fund management structure. This thesis analyzes the interview results and recommends changes in the rate stabilization policy which should help the industrial fund operate more efficiently. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1982
- Accession Number
- ADA124059
Entities
People
- Kenneth S. Caldwell Jr
Organizations
- Air Force Institute of Technology