Accession Number : ADA302774

Title :   DLA Stock Location Policy Based on Percentage of System-Wide Demand: Focus on the Norfolk Geographic Region.

Descriptive Note : Master's thesis,

Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Personal Author(s) : Hickmon, Byers L.

PDF Url : ADA302774

Report Date : JUN 1995

Pagination or Media Count : 270

Abstract : The Department Of Defense (DoD) has consolidated the physical distribution functions for wholesale consumable material under the Defense Logistics Agency (DLA). As a consequence, service customers are worried that many repair parts that used to be geographically co-located would be moved to distant DLA supply depots. One DLA proposal is to stock material in a given geographic region if the demand in that region is above a certain percentage of system-wide demand. This study evaluates that proposal by looking at the demand of electronic items over a one-year period, during FY 92, in the Norfolk geographic region. Specifically, it compares transportation costs between maintaining the current DLA stockage policy and stocking all items at Defense Depot Norfolk. The study found that significant savings in second destination transportation costs can be achieved for those items that experienced at least 40% of their annual demand in the Norfolk area. The Department Of Defense (DoD) has consolidated the physical distribution functions for wholesale consumable material under the Defense Logistics Agency (DLA). As a consequence, service customers are worried that many repair parts that used to be geographically co-located would be moved to distant DLA supply depots. One DLA proposal is to stock material in a given geographic region if the demand in that region is above a certain percentage of system-wide demand. This study evaluates that proposal by looking at the demand of electronic items over a one-year period, during FY 92, in the Norfolk geographic region. Specifically, it compares transportation costs between maintaining the current DLA stockage policy and stocking all items at Defense Depot Norfolk.

Descriptors :   *POSITION(LOCATION), *SUPPLY DEPOTS, *GEOGRAPHIC AREAS, ELECTRONICS, VIRGINIA, TRANSPORTATION, DEPARTMENT OF DEFENSE, POLICIES, DEFENSE SYSTEMS, PHYSICAL PROPERTIES, MATERIALS, COSTS, REPAIR, SPARE PARTS, DISTRIBUTION FUNCTIONS.

Subject Categories : Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE