Download Free Electronic Document
Full Document
| Format | File Size | Notes |
|---|---|---|
| PDF file | 0.1 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
Research Synopsis
| Format | File Size | Notes |
|---|---|---|
| PDF file | 0.2 MB | Use Adobe Acrobat Reader version 10 or higher for the best experience. |
The Army's currently high (relative to demand) parts inventory is seen by some as a source of waste, but disposing of too much inventory can increase costs in the long run. The Army should assess the cost of inventory not on its total dollar value but instead on long-term factors such as storage costs, repair costs, and the risk of rebuy. RAND has developed formulas to estimate long-run cost of inventory based on these factors.
Research conducted by
This research was sponsored by the United States Army and conducted within the Military Logistics Program, a part of the RAND Arroyo Center.
This publication is part of the RAND Corporation Perspective series. RAND Perspectives present expert insights on timely policy issues. All RAND Perspectives undergo peer review to ensure high standards for quality and objectivity.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.