Accession Number:

ADA010821

Title:

Development of Best Unit Price Data,

Descriptive Note:

Corporate Author:

NAVY FLEET MATERIAL SUPPORT OFFICE MECHANICSBURG PA OPERATIONS ANALYSIS DEPT

Personal Author(s):

Report Date:

1975-06-04

Pagination or Media Count:

46.0

Abstract:

Early in the provisioning process, an estimated price for a secondary item is provided which is often significantly less than that quoted at the time of item procurement. This inaccurate estimate often results in either 1 a cut back in the desired buy quantity, 2 the short changing of other programs, or 3 the administrative problem of reprogramming funds to cover requirements. Thus, it is important to investigate procedures which will improve the initial price estimate. A technique has been successfully applied to determine a representative replacement factor for families of items. The purpose of this study was to determine the feasibility of developing a best unit price for families of items. The principle cited and a number of alternatives were applied. It is concluded that the proposed method for developing best unit prices is inadequate and infeasible.

Subject Categories:

  • Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE