Accession Number : ADA265949
Title : Regional Freight Consolidation Center Break-Even Model
Descriptive Note : Final rept.
Corporate Author : DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
Personal Author(s) : Kleinhenz, Mark
Report Date : Jan 1993
Pagination or Media Count : 42
Abstract : The ongoing military drawdown has caused a decline in vendor freight moving through the Regional Freight Consolidation Centers (RFCCs). Since further reductions in freight volume are anticipated, the Transportation Services Team (MMATT) requested information on the minimum annual freight volume required for a given RFCC to remain cost effective. Because some traffic lanes may not be as cost effective as others, management needs insight on the impact of changing transit time policy on RFCC transportation savings. To address these concerns, the objectives of the study were to determine the approximate tonnage for the RFCC transportation cost to equal direct shipment cost and to determine the impact on RFCC transportation savings of changing transit time policy for traffic lanes. The study is based on 1 year's data (FY 92) from the RFCC history tapes. The scope of the work is limited to examining vendor consolidation operations at the five commercial RFCCs; only traffic lanes between the commercial RFCCs and the six traditional DLA depots were analyzed.
Descriptors : *LOGISTICS SUPPORT , *COSTS , *CARGO , TRANSPORTATION , POLICIES , MANAGEMENT , TAPES , SAVINGS , VENDORS , HISTORY , IMPACT , COST EFFECTIVENESS , TRAFFIC , REDUCTION
Subject Categories : Economics and Cost Analysis
Logistics, Military Facilities and Supplies
Distribution Statement : APPROVED FOR PUBLIC RELEASE