The Impact of Premium Transportation on USMC Logistics Processes

Abstract

The purpose of this thesis is to use simulation models to evaluate the benefits and costs of premium transportation on inventory levels at I MEF, Camp Pendleton, CA. The core of the research focuses on studying the impact that 100 percent premium transportation has on Order Ship Time (OST) and requisitioning objective inventory levels at I MEF. Although premium transportation is expensive, the savings in inventory costs provide an opportunity to offset transportation costs, decrease OST, and improve overall customer service. The research results show that the benefits generally outweigh the costs when premium transportation is used for consumable items. Premium resupply from the New Cumberland/Mechanicsburg Depot resulted in significant OST reductions while incurring an additional cost of only $400 per month. Premium resupply from the Sharpe/Tracy Depot is available at no cost because the depot has unused premium transportation capacity readily available. Repairable items, however, do not appear to support the use of premium transportation due to their high weight, and thus high transportation cost.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1997
Accession Number
ADA341609

Entities

People

  • William T. Hagerott

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Air Transportation
  • Computer Programs
  • Cost Benefit Analysis
  • Cost Reductions
  • Costs
  • Department Of Defense
  • Inventory
  • Inventory Control
  • Land Transportation
  • Lead Time
  • Logistics
  • Marine Corps
  • Probability
  • Probability Distributions
  • Simulations
  • Systems Management
  • Transportation

Readers

  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.
  • Maritime Combat Support and Expeditionary Logistics.