Allocating the increased operational costs in retail prices at the Defense Electronics Supply Center as a result of Defense Management Report Decision 901. PDF
Preview Allocating the increased operational costs in retail prices at the Defense Electronics Supply Center as a result of Defense Management Report Decision 901.
NAVAL POSTGRADUATE SCHOOL Monterey California , THESIS ALLOCATING THE INCREASED OPERATIONAL COSTS IN RETAIL PRICES AT THE DEFENSE ELECTRONICS SUPPLY CENTER AS A RESULT OF DEFENSE MANAGEMENT REPORT DECISION 901 by Michael G. Ahern June 1991 Thesis Advisor: Alan W. McMasters Approved for public release; distribution is unlimited T256260 UNCLASSIFIED SECURITY CLASS^'CATiON Of THIS PAGE REPORT DOCUMENTATION PAGE FormApproved OMBNo 07040 88 1 la REPORT SECURITY CLASSIFICATION lb RESTRICTIVE MARKINGS UNCLASSIFIED 2a SECURITY CLASSIFICATION AUTHORITY 3 DISTRIBUTION/AVAILABILITY OF REPORT Approved for public release; 2b DECLASSIFICATION 'DOWNGRADING SCHEDULE distribution is unlimited 4 PERFORMING ORGANIZATION REPORT NUMBER(S) 5 MONITORING ORGANIZATION REPORT NUMBERfS, 6a NAME OF PERFORMING ORGANIZATION 6b OFFICE SYMBOL la NAME OF MONITORING ORGANIZATION (// applicable) Naval Postgraduate School Code 36 Naval Postgraduate School 6c ADDRESS {City, State, and ZIPCode) 7b ADDRESS(City, State, and ZIPCode) Monterey, California 93943-5000 Monterey, California 93943-5000 3a NAME OF FUNDING/SPONSORING 8b OFFICE SYMBOL 9 PROCUREMENT INSTRUMENT IDENTIFICATION NUMBER ORGANIZATION (If applicable) 8c ADDRESS(City, State, and ZIPCode) 10 SOURCE OF FUNDING NUMB-RS PROGRAM PROJECT TASK WORK UNIT ELEMENT NO NO NO ACCESSION NO 11 TITLE (Include Security Classification) ALLOCATING THE INCREASED OPERATIONAL COSTS IN RETAIL PRICES AT THE DEFENSE ELECTRONICS SUPPLY CENTER AS A RESULT OF DEFENSE MANAGEMENT REPORT 12 PERSONAL AUTHOR(S) Ahern, Michael G. 13a TYPE OF REPORT 3b TIME COVERED 14 DATE OF REPOR1 (Year, Month Day) 51P0A5GE COL NT Master's Thesis FROM TO 1991, June TJ£heSUvPiPeLEwMsENTeAxRpYrNeOsTsATeIdON.in t,hi.s thesis are th, ose of_ the aut,hor and, d,o not ref„,lect t,he of_f_.ici.al_ policy or position- of the Department of Defense or the U.S. Government. 17 COSATi CODES 18 SUBJECT TERMS (Continue on reverse if necessary and identify by block number) FIELD GROUP SUB-GROUP Surcharge; Defense Management Report Decision; Stock Fund; DLA; DESC 19 ABSTRACT (Continue on reverse if necessary and identify by block number) Defense Management Review Decision (DMRD) 901 requires inventory con- trol points managing Department of Defense (DoD) stock-funded material to include all the costs of doing business in the stock fund surcharge. The inventory control points will no longer receive direct operational and maintenance (O&M) funding in the defense budget. As a result of DMRD 901, for fiscal year 1991, the Defense Electronics Supply Center (DESC) must recoup, through its operational surcharge, $84.1 million of its own opera- tional costs and $100.9 million of DLA Headquarters and support activity costs (a total of $185.0 million). The increased surcharge has signifi- cantly raised the retail price DESC's customers must now pay for material requisitioned. This thesis will present alternative methods for allocating costs by changing the allocation base and examine the use of a fixed order 20 DISTRIBUTION AVAILABILITY OF ABSTRACT 21 ABSTRACT SECURITY CLASSIFICATION Q UNCLASSIFIED/UNLIMITED SAME AS RPT Q DTIC USERS Unclassified P22raofNA.MEAOlFaREnSPOWNS.IBLMEcIMNDaIVsIDtUeALrs 22b(4T0EL8E)PHON6E4(6In-cl2ud6e7Ar8eaCode) 2C2codOFeFICEASSY/MMBOg. DDForm 1473, JUN 86 Previouseditionsareobsolete SECURITY CLASSIFICATION OF THIS PAGE S/N 0102-LF-014-6603 UNCLASSIFIED UNCLASSIFIED SECURITY CLASSIFICATION OF THIS PAGE #11 - TITLE - (CONTINUED) DECISION 901 #19 - ABSTRACT - (CONTINUED) charge to determine their effect on the retail prices of material. DD Form 1473, JUN 86 (Reverse) security classification of this page ii UNCLASSIFIED
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