Defense National Stockpile Holding Costs

Abstract

This report documents the development of annual holding costs for the Defense National Stockpile (DNS) commodities. Three annual cost-to-hold factors are presented for use in analyses with different levels of specificity: a marginal cost-to-hold factor that would be applicable to a small portion(s) of the DNS, the selling or buying of which would impact only direct operating costs with no changes in space requirements or overhead costs; a total cost-to-hold factor that would be applicable for large scale changes that impact the overhead structure of the DNS; and a cost-to-hold factor for commodities that are currently excess which uses specific storage costs rather than an overall average. Based on the treatment of market gain, the actual holding costs for FY 89 were estimated to range from $356.2 million to $747.3 million.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 1990
Accession Number
ADA233575

Entities

People

  • James W. Anderson

Organizations

  • Defense Logistics Agency

Tags

DTIC Thesaurus Topics

  • Acquisition
  • Blood Coagulation Factors
  • Budgets
  • Capital Investments
  • Commodities
  • Department Of Defense
  • Department Of State
  • Economic Analysis
  • Governments
  • Inventory
  • Investments
  • Logistics
  • Money
  • Operations Research
  • Procurement
  • Production
  • Stockpiles

Readers

  • Computational Fluid Dynamics (CFD)
  • Game Theory.
  • Government Contracting/Procurement.

Technology Areas

  • Space