DLA Forward Stocking
Abstract
DLA has proposed to forward stock AF-demanded items in the AOR. Currently DLA forward stores items having four or more demands. This study evaluates the feasibility of forward stocking in terms of DoD savings. The performance of DLA's criteria is evaluated and a new criteria using a cost and demand threshold is proposed. A model is developed to determine the economic feasibility of forward stocking based on realized 5-year annual savings exceeding the increased one-time, investment costs in inventory. Using this model, the performance of both the current DLA and newly developed criteria are evaluated under different storage costs and transportation times.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 2007
- Accession Number
- ADA468399
Entities
People
- John Flory
Organizations
- Air Force Logistics Management Agency