Accession Number : ADA328630

Title :   Cost of Nonconforming Supplies Update.

Descriptive Note : Final rept.,

Corporate Author : DEFENSE LOGISTICS AGENCY CHICAGO IL OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE

Personal Author(s) : Greve, Alan R.

PDF Url : ADA328630

Report Date : OCT 1994

Pagination or Media Count : 54

Abstract : This report updates the 1989 study of the cost of nonconforming supplies. Nonconforming supplies are supplies whose defects prevent their use for their intended purpose. These nonconformances are documented on a Product Quality Deficiency Report (PQDR). Quantified components of nonconforming supplies costs were subdivided into administrative processing costs and material holding costs. These costs were computed not only for each DLA supply center but also, where possible, at the Federal Supply Group (FSC) and the Federal Supply Class (FSC) levels. The output of this study are costs formulae showing the administrative costs as a constant and the holding costs as a percent of the average contract value for each FSG or FSC at a supp!y center.

Descriptors :   *COSTS, *SUPPLIES, LOGISTICS MANAGEMENT, DEFICIENCIES.

Subject Categories : Economics and Cost Analysis
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE