Termination for Convenience Decision Support Model
Abstract
The General Accounting Office, National Security and International Affairs Division indicated that the Defense Logistics Agency's (DLA) policies and procedures were not effective in canceling or terminating procurements for material considered excess to current requirements. The DLA Operations Research and Economic Analysis Management Support Office was requested by the DLA contracting Directorate and the Directorate of Supply Operations, to review existing policies and procedures and to determine under what circumstances it is cost effective to cancel or terminate excess procurements. This report summarizes the current policies and describes an analytic model which: (1) standardizes and streamlines the termination process; (2) gives visibility of depot storage and handling costs; (3) identifies candidates for economic termination; and (4) if implemented, would reduce the value of excess on-order material and avoid unnecessary storage and handling costs. Keywords: Logistics, Materiel, Requirements, Procurement, Cancellation, Policies, Cost effectiveness, Models, Standardization, Supply depots, Visibility, Handling, Costs, Cost analysis, Order statistics, Value, Storage.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1990
- Accession Number
- ADA230641
Entities
People
- Iv. Brooks L. Thomas
- Michael A. Ryan
Organizations
- Defense Logistics Agency