The Effects of DLA IPG I Surcharges on DDRW End User Activity Inventory Policies
Abstract
The purpose of this thesis is to examine the effects on retail customers of surcharges proposed by the Defense Logistics Agency (DLA) on Issue Priority Group I (IPG I) requisitions. The intent of these surcharges is to enable DLA to recapture a portion of the costs incurred in meeting IPG I time standards. Additional goals are to discourage IPG I requisitioning for frivolous reasons and when maintenance of small retail inventories may be less costly to the government. Data were collected from the Naval Supply Centers (NSCs) at Oakland and San Diego, and the former Sharpe Army Depot, now incorporated with Defense Depot San Joaquin (DDJC). Two types of surcharges were applied to this data. A variety of flat rates per requisition were examined. Alternately, several percentage levels were applied to an item's unit price to test their effectiveness as surcharges. Combinations of flat and percentage rates also were studied. The evaluation found that flat rates tend to impact lower unit price and higher annual demand items first. Percent of unit price surcharges tend to have a relatively even impact as they are increased. Combinations of surcharges tend to cause most items to be stocked rapidly.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1992
- Accession Number
- ADA260885
Entities
People
- Jonathan D. Miller
- Richard A. Parker
- Telemachus C. Halkias
Organizations
- Naval Postgraduate School