DLA stock location policy |ba case study of high priority requisitions from NADEP, North Island

Abstract

As a consequence of recent Defense Management Review Decisions the Department of Defense (DoD) has consolidated the physical distribution functions for wholesale consumable materiel under the management of the Defense Logistics Agency (DLA) and recommended that current DLA stock location policies be reviewed. This thesis examines certain aspects of these policies. The primary focus was on how DLA is managing items which experience a large percentage of high priority requisitions. Initial analyses considered the magnitude of the high priority requisition problem by identifying all requisitions that were submitted to DLA during FY92 using Issue Priority Group (IPG) I designation and a specified Required Delivery Date (RDD). Then, the six top items from this group requisitioned by the Naval Aviation Depot, North Island (NADEP NI), California were selected for detailed case studies. This study found the current stockage location of these items was neither nearest the customer nor nearest the vendor. Additionally, the lack of on-hand inventory was the most significant common factor causing shipment delays of the items.