Development of a Defense Logistics Agency Market Basket
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
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The DLA Market Basket model is an analytic approach for measuring DLAs performance of providing wholesale supply support to its customers. This approach closely follows that used by the U.S. Department of Labor, Bureau of Labor Statistics in developing the Consumer Price Index. The Market Basket is a representative sample of the population of items managed by DLA developed using stratified sampling techniques. From this sample of items, data are collected and four performance indicator values are computed. The indicators measure the rate of change in the Baskets four performance measurement areas over time. The four measurement areas are Price, Sustainability, Availability, and Quality. Each performance area is measured by a mathematical rate equation. These equations are composed of several related data elements. DLA management can use these indicators to measure and track supply support performance over time. Analysis of the supporting data, also generated by the model, can be used to explain the indicator values and to isolate areas where business improvements may be needed.... Market basket, Statistical sampling, Sampling, Performance indicators, Supply management.
- Information Science
- Economics and Cost Analysis
- Test Facilities, Equipment and Methods
- Logistics, Military Facilities and Supplies