Regional Freight Consolidation Center Break-Even Model
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
Pagination or Media Count:
The ongoing military drawdown has caused a decline in vendor freight moving through the Regional Freight Consolidation Centers RFCCs. Since further reductions in freight volume are anticipated, the Transportation Services Team MMATT requested information on the minimum annual freight volume required for a given RFCC to remain cost effective. Because some traffic lanes may not be as cost effective as others, management needs insight on the impact of changing transit time policy on RFCC transportation savings. To address these concerns, the objectives of the study were to determine the approximate tonnage for the RFCC transportation cost to equal direct shipment cost and to determine the impact on RFCC transportation savings of changing transit time policy for traffic lanes. The study is based on 1 years data FY 92 from the RFCC history tapes. The scope of the work is limited to examining vendor consolidation operations at the five commercial RFCCs only traffic lanes between the commercial RFCCs and the six traditional DLA depots were analyzed.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies