Cost-benefit analysis of the Enhanced Transportation Service Program
Publisher: Naval Postgraduate School; Available from National Technical Information Service
Published: 1997
Place of publication: Monterey, Calif; Springfield, Va
Language: eng
Number of pages: 104
Subjects: LOGISTICS MANAGEMENT; COST ANALYSIS
Description: This thesis is a cost-benefit analysis of the Enhanced Transportation Service (ETS) Program, which is a proposed      initiative under the Marine Corps' 'Precision Logistics' concept. The general focus of 'Precision Logistics' is to      provide the warfighter with the right thing, at the right place, at the right time, with the least amount of effort and      cost. (Hamilton, 1996) The specific focus of the ETS Program is to utilize premium transportation service (i.e., next      day air) to reduce order ship time (OST), which will result in lower stockage levels. The intent of this study was to      determine if the benefit derived from reduced stockage levels outweighs the additional cost of air shipment. This is      intended to be the first in a series of studies of the ETS program. The study was based on the requisitioning      objective (RO) stockage level. A computer spreadsheet model of the RO formula was built and two Monte Carlo      simulation runs conducted to determine if the ETS Program is cost effective. Results of the analysis suggest that the      cost of premium transportation service is significantly less than the cost of additional inventory that would have to      be carried if premium transportation were not utilized. Therefore, further research of the ETS Program is      warranted. Recommendations on the direction of future studies are provided.
Notes: Thesis advisors, Gordon Louvau and Paul Fields.

AD-A331 825.

Thesis (M.S. in Management) Naval Postgraduate School, June 1997.

Includes bibliographical references (p. 59-60)

dk/dk cc:9116 11/12/97.