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Cost of Reports of Discrepancy Update,

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The objective of this study is to update the estimate of the costs associated with the receipt of an item having a shipping or packaging problem. These cost estimates or evaluation factors can then be used as part of the bid evaluation process. Specifically, this study determines the cost of the ROD reporting process from its inception when a problem is discovered and its processing through various DoD, DLA and individual service activities. Actions for all activities that normally play a part in the process are quantified in monetary terms. The average holding cost per ROD resulting from the receipt of a discrepant item is also calculated. These costs are identified by Federal Supply Class FSC and the managing DLA Supply Center. A ROD is the device utilized by service activities and other DoD agencies including depots to report any problems or discrepancies other than nonconforming material. Submission of this report occurs at all echelons the ultimate user, the retail supply activity, or a wholesale supply source, depending upon what level detects the discrepant item or shipment. Specifically, this analysis concentrates on any report transaction that involves an SF 364, the actual Report of Discrepancy ROD form. In this study, the single cost generated for a ROD, encompassing both holding and administrative components, may be interpreted as the minimum cost for a ROD. The process analyzed in this report encompasses only the essential information transfers, investigative efforts, and resolution actions for a typical ROD. This study measures the cost for all actions that should occur, not necessarily all actions that could occur.

Subject Categories:

  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

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