Hazardous Material Stockage Policy Analysis
Abstract
Previous research into stock location policy has indicated that demand for DLA's fast moving stock was relatively unstable. This focused attention on DLA's long standing stock location policy of placing stock at depots nearest to the ordering customer. The results of previous research showed that for fast moving items DLA could realize large savings by changing to a closest to vendor stock location policy. The focus for this study was to answer the same question only for hazardous material. Furthermore, the stockage locations were to be restricted to the three main hazardous facilities at Defense Depot Richmond, Virginia (DDRV), Defense Depot Ogden, Utah (DDOU), and Defense Depot Memphis, Tennessee (DDMT). This choice was made to hopefully avoid incurring the expense of maintaining hazardous material storage facilities at additional-sites. Cost was not to be the only critical factor. The capability of a depot to store and handle hazardous material was also taken into consideration in this comparative analysis. The results of this study are that the closest to vendor stock location policy is significantly less expensive, approximately $4.2 million per year. It was found that the three hazardous depots of DDRV, DDOU, and DDMT could easily manage increased throughput limits. However, it was found that while the depots' space surplus and shortage conditions in specific hazardous categories net out to a slight surplus of space, critical space shortages exist for certain hazardous classes both at specific depots and for the system as a whole. The two hazardous classes with the most critical space shortages are the flammable and corrosive classes. Without resolution of these shortage issues, the policy cannot be implemented.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1993
- Accession Number
- ADA276184
Entities
Organizations
- Defense Logistics Agency