Accession Number : ADA260297
Title : Computation of Production Leadtime Savings
Descriptive Note : Final rept.
Corporate Author : DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
Personal Author(s) : Colletti, Bruce
Report Date : Nov 1992
Pagination or Media Count : 36
Abstract : Production Leadtime (PLT) is how long it takes to deliver an item after it is ordered. By reducing PLT, Defense Logistics Agency (DLA) Value Engineers (VE) hope to lower the total item costs and thus create dollar savings (i.e., PLT savings). Although a PLT savings formula now exists, VEs have long sought a more accurate and defensible formula. The purpose of this study is to replace the old PLT savings formula with one that is more accurate and defensible. The general objectives of the study are to: complete a background review of previous work in this area, to include becoming familiar with aspects of the Standard Automated Materiel Management System (SAMMS); understand the methods used in the VE community to compute PLT savings and to arrive at a general approach that has their concurrence; develop a mathematical approach that emulates, as well as possible, the various costs that are impacted by changes in PLT; and incorporate the mathematical approach in a personal computer based tool for use by the VE community in the DLA hardware centers.
Descriptors : *LOGISTICS MANAGEMENT , COMPUTER PROGRAMS
Subject Categories : Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE