Bulk Relocation of Attrition Stocks. Economic Considerations.

Abstract

A consolidated massive quantity of secondary items may become a candidate for storage relocation for a variety of reasons, including mission changes, redistribution of assets, or transfer of logistics responsibility. Department of Defense Instruction 4140.49 was issued to insure that economic ramifications are explicitly considered in such a relocation decision. It prescribes an admittedly 'conceptual' economic breakpoint formula to compare the costs of bulk relocation versus attrition. This study investigates the breakpoint formula published in the DODI to insure its effective and efficient implementation within the Army. It was concluded that this algebraic formula cannot adequately represent the unique characteristics of each mass relocation circumstance. A comprehensive economic analysis approach is recommended that compiles with the basic intent of the DODI. This economic analysis must be centrally directed and evaluated by HQ DARCOM. The results can then be incorporated into the multi-attribute decision process with such competing factors as readiness, reaction time, facilities, and vulnerability. (Author)

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1983
Accession Number
ADA134800

Entities

People

  • J. R. Bainbridge
  • R. D. Abeyta

Organizations

  • Army Materiel Systems Analysis Activity

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Accuracy
  • Air Force
  • Business Administration
  • Control Systems
  • Department Of Defense
  • Economic Analysis
  • Inventory
  • Inventory Control
  • Logistics
  • Logistics Management
  • Maintenance
  • Management Personnel
  • Operations Research
  • Organizational Structure
  • Supply Depots
  • Systems Analysis

Readers

  • Facility/Structural Engineering.
  • Logistics and Supply Chain Management.
  • Theoretical Analysis.