DLA Stock Location Policy Based on Percentage of System-Wide Demand: Focus on the Norfolk Geographic Region.
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 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, during FY 92, in the Norfolk geographic region. Specifically, it compares transportation costs between maintaining the current DLA stockage policy and stocking all items at Defense Depot Norfolk. The study found that significant savings in second destination transportation costs can be achieved for those items that experienced at least 40% of their annual demand in the Norfolk area. 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 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, during FY 92, in the Norfolk geographic region. Specifically, it compares transportation costs between maintaining the current DLA stockage policy and stocking all items at Defense Depot Norfolk.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1995
- Accession Number
- ADA302774
Entities
People
- Byers L. Hickmon
Organizations
- Naval Postgraduate School