Primary Distribution Site (PDS) Location Analysis

This report presents the results of an analysis of alternative configurations for the consolidation of Department of Defense DoD supply depots. This consolidation is being undertaken by the Defense Logistics Agency DLA under Defense Management Review Decision DMRD 902. The DLA Depot consolidation Office DLA-OC has developed a concept for managing the consolidation depots using Primary Distribution Sites PDSs. Given acceptance of the PDS concept, the purpose of this analysis was to determine how many PDSs there should be, and where they should be located. Two key assumptions were used in the analysis. First, a demand based stockage policy was used, where each site serves all the customers in an assigned area. The second assumption involved the workload at sites not functioning as PDSs, i.e., those sites which would remain as satellite or specialized stockage requirements. It is expected that the conclusions of this study will be reexamined as other ongoing and planned research efforts provide further insight into these and other study assumptions. The results of the analysis indicated that a three PDS configuration consisting of MechanicsburgNew Cumberland, PA, Memphis, TN and TracySharpe, CA, provided the lowest cost while not overly exceeding the sites capacities to process the workload.