A cost-benefit analysis of establishing a warehouse facility for the services division of the Directorate of Personnel and Community Activities at Fort Ord, California
Bartlett, William W.
Strei, Thomas J.
Gates, William R.
Carrick, Paul M.
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The Assistant Director for Community Family Activities (DCFA) at Fort Ord Army Base requested a cost - benefit analysis to determine if the Services Division of CFA should establish a warehouse operation. This study determined the feasibility of standardizing certain non-perishable products procured with Non Appropriated Fund (NAF) resources, buying them in bulk and issuing them through a new warehouse facility. The analysis of available data indicates that it is not economically justifiable to establish a new warehouse facility in order to make large quantity purchases with subsequent distribution to customer activities. In view of the conclusion, this study provides several cost saving measures which, if adopted by the organization, will result in substantial savings in outlays.
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