Kenneth J. Girardini, Art Lackey, Kristin Leuschener, Daniel's Dollar Cost Banding: A New Algorithm for Computing Inventory PDF

By Kenneth J. Girardini, Art Lackey, Kristin Leuschener, Daniel A. Relles, Mark Totten

ISBN-10: 0833035533

ISBN-13: 9780833035530

Describes the advance and implementation of buck rate banding, a brand new set of rules for computing inventories maintained by means of military provide aid actions.

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Additional info for Dollar Cost Banding: A New Algorithm for Computing Inventory Levels for Army SSAs

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Again, the primary reason the value of the ROs went down was that although most of the decreases and deletes were accepted, there were only limited funds available for the adds and increases recommended. The next ASL review for the 101st used an improved version of the DCB algorithm. The resulting changes were input to the system in May 1999. This iteration led to changes in the dollar value of the RO at each SSA. As had been the case in the prior ASL reviews, there were still significant budget and mobility constraints that limited the improvements possible, although the value of the divisionwide ASL ____________ 3 The qualification was later expanded to reflect additional parameters, including (1) density of the supported end item, (2) the number of high-priority demands, (3) the number of recent demands, and (4) item weight and cube.

18 Dollar Cost Banding The 9/3 policy did not differentiate among items according to cost or criticality. Instead, these criteria were applied equally to a tencent screw and a $500,000 tank engine, despite the very different levels of investment and impact on readiness associated with each item. The algorithm did not incorporate automated checks to the 9/3 policy to keep items off the ASL, including non-mission-essential items, items that could not be replenished through the standard supply chain, and items used to support weapon systems that were being phased out.

The “customer” refers to the unit parts clerk who orders parts for the unit’s maintenance technicians or equipment operators. As shown, a part request can be filled from one of several sources: • Unit-level fill occurs when the part required by the maintenance technician or operator is issued from inventory held and maintained by the parts clerk (unit-level inventory). This is an over-the-counter transaction and no electronic record is made of the request (though an electronic record will be made for the replenishment of unit-level inventories).

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Dollar Cost Banding: A New Algorithm for Computing Inventory Levels for Army SSAs by Kenneth J. Girardini, Art Lackey, Kristin Leuschener, Daniel A. Relles, Mark Totten

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