Determining Outsourcing Potential for the Inventory Management of Navy Repairables.

Abstract

The potential exists to outsource the inventory management of repairable items to the private sector. However, the Navy must be able to determine when outsourcing will benefit DoD. This research compares Navy inventory management to commercial inventory management in proposed and existing outsourcing programs and develops a model which the NAVICP can use to estimate the potential success for outsourcing repairable items. The research develops an inventory surcharge of 19 percent. The inventory surcharge represents the Navy's costs to perform functions which can be outsourced and serves as a benchmark for comparison to commercial costs. The research then analyzes the costs and benefits of several successful DLA and NAVICP outsourcing initiatives. The analysis results in a model which NAVICP can use to screen repairable items to determine which level of outsourcing will succeed.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1996
Accession Number
ADA327503

Entities

People

  • Andrew S. Morgart

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Biomedical
  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Business Administration
  • Contracts
  • Databases
  • Department Of Defense
  • Information Systems
  • Inventory
  • Inventory Control
  • Lead Time
  • Logistics
  • Maintenance
  • Operational Readiness
  • Operations Research
  • Procurement
  • Prototypes
  • Radar
  • Standards
  • United States

Readers

  • Defense Acquisition Program Management
  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.