Logistic Performance Indicators for Cost-Benefit Analyses of Automatic Data Processing System.
AMC INVENTORY RESEARCH OFFICE PHILADELPHIA PA
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The objective is to develop and test methodology for estimating material-related cost savings for use in Cost-Benefit analysis related to the introduction of new or up-graded Automatic Data Processing ADP systems. A set of Logistics Performance Indicators LPI is defined that can be used to measure the changes in logistic performance that can be attributed to the new ADP system. Well-known inventory models are then adapted to calculate the changes in material-related costs given the changes that take place in the LPIs. Results are presented of a DELPHI experiment conducted to test the ability of knowledgeable logistics personnel to forecast changes in the LPIs expected to occur when the AMC Commodity Command Standard System is implemented at the Army Tank-Automotive Command projected cost savings for this test case are given. Recommendations are also made on how the pre- and post-implementation values of the LPIs should be measured and on how the actual cost differences should be calculated. Author
- Logistics, Military Facilities and Supplies