Accession Number:

ADA188035

Title:

Analysis of Annual Buys.

Descriptive Note:

Final rept. Apr 85-Jul 86,

Corporate Author:

DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALY SIS OFFICE

Personal Author(s):

• Russell, James M.

Report Date:

1986-08-01

Pagination or Media Count:

104.0

Abstract:

This study evaluated the effects of implementing a minimum annual buy policy at Defense Logistics Agency hardware supply centers. A computer model was developed to analyze changes in on-hand inventory, contracting workload, storage requirements, safety levels, and funds utilization due to increased procurement cycles. The study shows that the main benefit of an annual buy policy is savings from increased quantity price breaks rather than savings in contracting workload as previously expected. The major costs of the policy appear to be not only increased inventory, but also significantly increased storage requirements. Keywords Replenishment type Items Computer models Statistical data Charts TablesData Payback.

Descriptors:

• *MILITARY PROCUREMENT
• *POLICIES
• *SYSTEMS ANALYSIS
• COMPUTERIZED SIMULATION
• COSTS
• CYCLES
• INVENTORY
• MONEY
• POLICIES
• REPLENISHMENT
• REQUIREMENTS
• SAFETY
• STATISTICAL DATA
• STORAGE
• UTILIZATION
• INVENTORY ANALYSIS
• CHARTS
• TABLES(DATA)

Subject Categories:

• Logistics, Military Facilities and Supplies
• Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE