Bulk Relocation of Attrition Stocks. Economic Considerations.
ARMY MATERIEL SYSTEMS ANALYSIS ACTIVITY FORT LEE VA
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A consolidated massive quantity of secondary items may become a candidate for storage relocation for a variety of reasons, including mission changes, redistribution of assets, or transfer of logistics responsibility. Department of Defense Instruction 4140.49 was issued to insure that economic ramifications are explicitly considered in such a relocation decision. It prescribes an admittedly conceptual economic breakpoint formula to compare the costs of bulk relocation versus attrition. This study investigates the breakpoint formula published in the DODI to insure its effective and efficient implementation within the Army. It was concluded that this algebraic formula cannot adequately represent the unique characteristics of each mass relocation circumstance. A comprehensive economic analysis approach is recommended that compiles with the basic intent of the DODI. This economic analysis must be centrally directed and evaluated by HQ DARCOM. The results can then be incorporated into the multi-attribute decision process with such competing factors as readiness, reaction time, facilities, and vulnerability. Author
- Numerical Mathematics
- Logistics, Military Facilities and Supplies