Wholesale Stock Positioning and Distribution Policies. Phase I. Volume 2. Methodology.
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.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1985
- Accession Number
- ADA162916
Entities
People
- Paul E. Grover