Accession Number : ADA188035

Title :   Analysis of Annual Buys.

Descriptive Note : Final rept. Apr 85-Jul 86,

Corporate Author : DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALY SIS OFFICE

Personal Author(s) : Russell, James M

PDF Url : ADA188035

Report Date : Aug 1986

Pagination or Media Count : 104

Abstract : This study evaluated the effects of implementing a minimum annual buy policy at Defense Logistics Agency hardware supply centers. A computer model was developed to analyze changes in on-hand inventory, contracting workload, storage requirements, safety levels, and funds utilization due to increased procurement cycles. The study shows that the main benefit of an annual buy policy is savings from increased quantity price breaks rather than savings in contracting workload as previously expected. The major costs of the policy appear to be not only increased inventory, but also significantly increased storage requirements. Keywords: Replenishment type; Items; Computer models; Statistical data; Charts; Tables(Data); Payback.

Descriptors :   *MILITARY PROCUREMENT, *POLICIES, *SYSTEMS ANALYSIS, COMPUTERIZED SIMULATION, COSTS, CYCLES, INVENTORY, MONEY, POLICIES, REPLENISHMENT, REQUIREMENTS, SAFETY, STATISTICAL DATA, STORAGE, UTILIZATION, INVENTORY ANALYSIS, CHARTS, TABLES(DATA)

Subject Categories : Logistics, Military Facilities and Supplies
      Administration and Management

Distribution Statement : APPROVED FOR PUBLIC RELEASE