The impact of premium transportation on USMC Logistics processes

• Main Author: Hagerott, William T
• Other Authors: Fields, Paul J.
• Language: English
• Published: Monterey, California. Naval Postgraduate School 2012
• Online Access: http://hdl.handle.net/10945/8495

Approved for public release; distribution is unlimited === The purpose of this thesis is to use simulation models to evaluate the benefits and costs of premium transportation on inventory levels at I MEF, Camp Pendleton, CA. The core of the research focuses on studying the impact that 100 percent premium transportation has on Order Ship Time (OST) and requisitioning objective inventory levels at I MEF. Although premium transportation is expensive, the savings in inventory costs provide an opportunity to offset transportation costs, decrease OST, and improve overall customer service. The research results show that the benefits generally outweigh the costs when premium transportation is used for consumable items. Premium resupply from the New Cumberland/Mechanicsburg Depot resulted in significant OST reductions while incurring an additional cost of only $400 per month. Premium resupply from the Sharpe/Tracy Depot is available at no cost because the depot has unused premium transportation capacity readily available. Repairable items, however, do not appear to support the use of premium transportation due to their high weight, and thus high transportation cost