Depot Throughput Measures for Distribution System Analysis.

The DoD materiel distribution system is one of the most complex physical distribution systems in the world. It encompasses five separate distribution systems, one for each Service and Defense Logistics Agency. Annual system costs are estimated to exceed one billion dollars. The DoD Materiel Distribution System DoDMDS study sponsored by the Joint Logistics Commanders in 1978 reported that the distribution requirements of the Services and DLA could be satisfied at substantial cost reduction, close to 100 million annually. Those savings could be achieved through depot consolidations, inventory redeployments, and altered transportation arrangements. The recommended program to capture those savings was never implemented, however. The methodology used by the study team could not withstand several technical challenges, including the teams method of treating depot throughput costs and capacities. As an outgrowth of the DoDMDS study, the Principal Deputy Assistant Secretary of Defense Manpower, Reserve Affairs and Logistics, in 1979 requested the Defense Logistics Analysis Office to prepare a long-range study plan for improving materiel distribution within the DoD. The development of valid measures of depot throughput costs and capacities is one task in that plan. This report describes the throughput measures we propose be used in future studies of the DoD materiel distribution system. Author