Los Angeles EDDS Site Transportation Cost Analysis for the Pooling Phase July-December 1989
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA
Pagination or Media Count:
The Los Angeles Enhanced DLA Distribution System EDDS Site Pooling Study is an analysis of the cost effectiveness of the Los Angeles EDDS site in comparison with direct shipment to the customer. Pooling is defined as the consolidation of truckload shipments from the depots into large less-than- truckload or truckload lots for transshipment to the customer. Comparison of the cost of EDDS pooling at Los Angeles with the potential cost of direct shipment to the customer showed that during the second 6 months of operations, the Los Angeles EDDS site has absorbed a loss of approximately 82,000. Analysis showed that although shipments are being consolidated at a higher rate than the first 6 months, outbound shipment rates from the Los Angeles EDDS site are still too high. Several scenarios are presented and their respective costs calculated to demonstrate under what conditions the EDDS concept can generate savings at the Los Angeles EDDS site.
- Economics and Cost Analysis
- Surface Transportation and Equipment
- Logistics, Military Facilities and Supplies