Surface Versus Air Transportation Analysis (Automatic Downgrade Endeavor)
Abstract
The U.S. Army has permitted the Defense Logistics Agency (DLA) to automatically downgrade Issue Priority Group/Transportation Priority I (IPG/TP I) shipments from air to surface transportation modes during a 1-year test period. The Automatic Downgrade Endeavor does not apply to Not Mission Capable Status (NMCS) or other '999' Required Delivery Date (RDD) Shipments. This analysis is conducted to determine the total number of IPG/TP I shipment downgrades during the test period, the related processing and transit times for those shipments, the actual surface transportation costs of these shipments, and the associated transportation costs via an air freight carrier. These figures, along with the calculated cost differential between surface and air modes, will be used to determine the feasibility of continuing the program on a permanent basis. The Automatic Downgrade Endeavor does save the Department of Defense (DOD), based on U. S. Army downgrades, approximately $3.449 million a year at existing levels of traffic and current rates. It is recommended that DLA continue with the Automatic Downgrade Endeavor while monitoring system performance to determine if the dollar cost savings versus increased shipment times is cost effective. (sdw)
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 1990
- Accession Number
- ADA222661
Entities
People
- Charles H. Shaw Iii
Organizations
- Defense Logistics Agency