DLA Stock Location Policy based on Percentage of System-Wide Demand
Abstract
The Department of Defense (DoD) has consolidated the physical distribution functions for wholesale consumable material under the Defense Logistics Agency (DLA). As a consequence, service customers are worried that many repair parts that used to be geographically co-located would be moved to distant DLA supply depots. One DLA proposal, to combat these fears, is to stock material in a given geographic region if the demand in that region is above a certain percentage of system-wide demand. This study evaluates that proposal by looking at the demand of electronic items over a one-year period in the San Diego and Norfolk geographic regions. In particular, it compares transportation costs between maintaining the current DLA stockage policy and stocking all items at Defense Depot San Diego. The study found that second destination transportation cost savings ranged from 55% for items that experienced 90% to 99% of their demand in the San Diego area, to 2.8% for items with 40% to 49% of their demand in the San Diego area.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1994
- Accession Number
- ADA283696
Entities
People
- Gary T. Murphy
Organizations
- Naval Postgraduate School