Wholesale Stock Positioning and Distribution Policies. Phase I. Volume 1. Main Report.

Abstract

A cost/benefit type analysis was performed on the CONUS physical distribution system for Army Class IX items to evaluate the impact of expanding the number of depots in which stocks are positioned. By positioning stock closer to the eventual customer, savings in second destination transportation cost and time were evaluated. However, those savings were offset by increased nonrecurring cost (start up costs) and recurring costs such as first destination transportation costs and supply depot operating costs. As the number of stock positioning points increases, total supply cost increases significantly. Therefore the existing distribution network is considered best at this time. However, because of less-than-perfect stock positioning, there is a considerable volume of shipments crossing geographical depot service boundaries which, if reduced, could significantly reduce total supply cost and time. Keywords: Cost analysis, Stock positioning, Inventory control, Stock control, Economic analysis, Physical distribution.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Aug 01, 1985
Accession Number
ADA162915

Entities

People

  • Paul E. Grover

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Boundaries
  • Cost Analysis
  • Cost Estimates
  • Cost Models
  • Costs
  • Databases
  • Department Of Defense
  • Economic Analysis
  • Inventory
  • Inventory Control
  • Logistics
  • Logistics Management
  • Maintenance
  • Procurement
  • Supply Depots
  • Transportation
  • United States

Readers

  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.
  • Positioning, Navigation, and Timing (PNT) Technology.