Cost to Establish and Maintain a National Stock Number
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
Pagination or Media Count:
With increased budgetary control being applied at virtually all levels of government operation, there comes a greater need for more accurate and realistic measures of system performance. One such measure is the cost incurred when a new National Stock Number NSN enters the Defense Logistics Agency DLA System. Another indicator is the cost required to maintain an existing NSN in the system per year. This latter measure can also be of use when assessing savings from the elimination of unnecessary NSNs. System performance in the areas of NSN entry and NSN maintenance processes cannot be satisfactorily measured, because accurate item entry and maintenance costs for DLA NSNs do not exist. This study found that the marginal direct costs were approximately 50 to enter an NSN, and 250 to maintain an NSN in the DLA system for one year, based on FY 1989 data.
- Logistics, Military Facilities and Supplies