Quantifying and Trading Off the Benefits of Reducing Order and Shipping Times.

Abstract : This report documents the findings of an analysis of the savings from reducing order and shipping time (OST) within DoD and also an analysis of how those savings could be traded off against the costs to implement OST reduction initiatives. The savings analysis determined what DoD retail inventory levels would be affected by a reduction in OST, then how much an OST reduction would reduce those levels, and finally how much savings would be generated by a reduction in retail levels. Working with the costs from distribution-oriented initiatives developed by the DLA Operations Research Office, the tradeoff analysis generated a method for determining when routine requisitions for replenishing retail stock should be expedited.