Analysis of Annual Buys.

Abstract

This study evaluated the effects of implementing a minimum annual buy policy at Defense Logistics Agency hardware supply centers. A computer model was developed to analyze changes in on-hand inventory, contracting workload, storage requirements, safety levels, and funds utilization due to increased procurement cycles. The study shows that the main benefit of an annual buy policy is savings from increased quantity price breaks rather than savings in contracting workload as previously expected. The major costs of the policy appear to be not only increased inventory, but also significantly increased storage requirements. Keywords: Replenishment type; Items; Computer models; Statistical data; Charts; Tables(Data); Payback.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Aug 01, 1986
Accession Number
ADA188035

Entities

People

  • James Russell III

Organizations

  • Defense Logistics Agency

Tags

Communities of Interest

  • Advanced Electronics
  • C4I

DTIC Thesaurus Topics

  • Classification
  • Climate Change
  • Commerce
  • Commodities
  • Construction
  • Contracts
  • Data Science
  • Economic Analysis
  • Electronics
  • Information Science
  • Inventory
  • Lead Time
  • Logistics
  • Operations Research
  • Regression Analysis
  • Statistics
  • Workload

Readers

  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.