An analysis of uncrated household goods traffic

Abstract

This paper examines the existing NAvy Household Goods (HHG) Program in relation to proposed alternative methods in an effort to improve the efficiency of uncrated household goods moves for Naval personnel. "Efficient" is defined as maximizing the quality of the military HHG move for a given cost, or minimizing the cost of performance of the move at a stated level of quality. Recent modification tot the HHG carrier suspension procedure, a negative incentive, were found to have reduced the effectiveness of this important traffic management tool. This paper concludes that a positive incentive provision must be included to improve the efficiency of the program. Two proposed alternative methods of achieving this objective were included. One, the Option Plan, would allow military personnel the option of arranging for and paying for their own move, and being reimbursed at a fixed percent of entitlement. The other, the Bonus Plan, would provide bonus tonnage as a reward to carriers whose past performance was superior. Criteria were developed to measure and compare these alternatives against the existing method. The criteria were expressed in terms of benefits and costs. Two simple models were constructed and tested with simulated data. Due to inability to quantify certain costs in the Option Plan model, it is considered incomplete and inconclusive and is recommended for further study. The Bonus Plan model, on the other hand, results in the conclusion that implementation of this plan would improve the efficiency of the program by increasing the quality of carrier performance at no increase in cost.