Wholesale Stock Positioning and Distribution Policies. Phase I. Volume 1. Main Report.
Final technical rept.,
LOGISTICS STUDIES OFFICE (ARMY) FORT LEE VA
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A costbenefit type analysis was performed on the CONUS physical distribution system for Army Class IX items to evaluate the impact of expanding the number of depots in which stocks are positioned. By positioning stock closer to the eventual customer, savings in second destination transportation cost and time were evaluated. However, those savings were offset by increased nonrecurring cost start up costs and recurring costs such as first destination transportation costs and supply depot operating costs. As the number of stock positioning points increases, total supply cost increases significantly. Therefore the existing distribution network is considered best at this time. However, because of less-than-perfect stock positioning, there is a considerable volume of shipments crossing geographical depot service boundaries which, if reduced, could significantly reduce total supply cost and time. Keywords Cost analysis, Stock positioning, Inventory control, Stock control, Economic analysis, Physical distribution.
- Logistics, Military Facilities and Supplies