Reshaping the Philosophy of Spare Parts Acquisition: Project PACER PRICE
Abstract
On June 1st, 1983, a new program called PACER PRICE began operation at the Oklahoma City Air Logistics Center. Staffed by an interdirectorate group of engineers, manufacturing planners, price analysts and packaging specialists, the program was designed as a thorough and comprehensive review process to determine optimum purchase method and price for every actively-purchased replenishment spare part managed at the Center. After three months of program operation, approximately 62 percent of the sole-source items have been recommended for competitive purchase, and the prices recommended for these items average about 35 percent below the latest contract prices adjusted for quantity and inflation. But beyond that, a new Philosophy of spare parts purchase has been formulated and effected as a procedural caveat: All spares should be both purchased competitively and PRICED TO CONFORM WITH COMPETITIVE-MARKET PRICES. The paper focuses on this philosophy, detailing in particular the mathematical models used to simulate competitive prices, and offers suggestions for further research into the competitive market place.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1983
- Accession Number
- ADP002791
Entities
People
- George Leininger