Development of a Defense Logistics Agency Market Basket

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Abstract:

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.

Author(s):
Melius, Mark
Author Organization(s):
DEFENSE LOGISTICS AGENCY ALEXANDRIA VA OPERATIONS RESEARCH AND ECONOMIC ANALYSIS OFFICE
Descriptive Note:
Final rept.,
Pagination:
0045

Security Markings

DOCUMENT & CONTEXTUAL SUMMARY

Distribution:
Approved For Public Release
Distribution Statement:
Approved For Public Release; Distribution Is Unlimited.

RECORD

Collection: TR
Identifying Numbers
Report Number(s):
DLA-93-P20058
Monitor Series:
DLA
 Subject Terms
Joint Capability Areas:
JCA_5_Command and Control; JCA_5.3_Planning; JCA_5.3.1_Analyze Problem; JCA_5.3.2_Apply Situational Understanding; JCA_5.3.3_Develop Strategy; JCA_5.3.4_Develop Courses of Action; JCA_5.3.5_Analyze Courses of Action; JCA_1.4_Force Support; JCA_1.4.1_Force Health Protection; JCA_4_Logistics; JCA_4.2_Supply; JCA_4.2.3_Manage Global Supplier Networks; JCA_6.4.1_Secure Information Exchange; JCA_4.5.4_Requirements Definition; JCA_4.5_Operational Contract Support; JCA_1_Force Support; JCA_4.3_Maintain; JCA_6.4_Information Assurance; JCA_6_Net Centric; JCA_1.2_Force Preparation; JCA_1.4.2_Health Service Delivery
Communities of Interest:
Human Systems
Descriptor(s):
*MODELS, *LOGISTICS, *SUPPLIES, *INDEXES, MEASUREMENT, COMMERCE, RATES, TIME, VALUE, TRACKS, PRICE INDEX, APPROACH, COMMODITIES, CONSUMERS, INDICATORS, EQUATIONS, LABOR, QUALITY, SAMPLING, AVAILABILITY, POPULATION, STATISTICS, MANAGEMENT
Field(s)/Group(s):
Information Science, Economics and Cost Analysis, Test Facilities, Equipment and Methods, Logistics, Military Facilities and Supplies
Keyword(s):
MARKET BASKET, STATISTICAL SAMPLING, PERFORMANCE INDICATORS, SUPPLY MANAGEMENT, DEFENSE LOGISTICS AGENCY
Report Date:
1993 Apr 01