Right Price, Fair Credit: Criteria to Improve Financial Incentives for Army Logistics Decisions

Overview

Under the Army's financial management system for spare parts, logistics customers receive budgets to buy spare parts from the supply system and receive credits for returning parts to the supply system, either for repair or because they are no longer needed in local inventories. The Army's wholesale inventories of spare parts are financed by a stock fund, which uses its income from the sale of parts, net of credits issued to customers, to pay for repairs and procurement of replacement parts. Some ...

See more details below
Paperback
$10.94
BN.com price
(Save 8%)$12.00 List Price
Other sellers (Paperback)
  • All (3) from $9.46   
  • New (2) from $9.46   
  • Used (1) from $12.00   
Sending request ...

Overview

Under the Army's financial management system for spare parts, logistics customers receive budgets to buy spare parts from the supply system and receive credits for returning parts to the supply system, either for repair or because they are no longer needed in local inventories. The Army's wholesale inventories of spare parts are financed by a stock fund, which uses its income from the sale of parts, net of credits issued to customers, to pay for repairs and procurement of replacement parts. Some installation-level, or retail, inventories are also financed by stock funds. During fiscal year 2001, the Army's stock funds were in a period of transition from separate wholesale and retail components to a Single Stock Fund (SSF). As part of this change, the Army implemented new price and credit policies for spare parts. In this document, the authors introduce a set of criteria to assess price and credit policy changes in terms of their effectiveness in meeting the overall objective of maintaining the logistics customer's ability to meet mission requirements while keeping weapon systems in operating condition at the lowest total cost to the Army. The authors then use these criteria to compare and evaluate pre-SSF,SSF, and proposed future price and credit policies, and define the characteristics of an optimal Army price and credit policy.

Read More Show Less

Product Details

  • ISBN-13: 9780833029522
  • Publisher: RAND Corporation
  • Publication date: 3/28/2002
  • Pages: 96
  • Lexile: 1650L (what's this?)
  • Product dimensions: 6.18 (w) x 9.02 (h) x 0.26 (d)

Read an Excerpt

Right Price, Fair Credit

Criteria to Improve Financial Incentives for Army Logistics Decisions
By Ellen M. Pint Marygail K. Brauner John R. Bondanella Daniel A. Relles Paul Steinberg

Rand Corporation

Copyright © 2002 RAND
All right reserved.

ISBN: 9780833029522


Preface

This report discusses how prices and credits for spare parts affect the behavior of logistics customers and suppliers and the performance of the Army logistics system as a whole. It describes a set of systemwide criteria for evaluating price and credit policies and applies them to current and proposed policies. It then uses the criteria as a basis to develop the characteristics of an optimal price and credit policy that would support the needs of logistics customers at a lower total cost to the Army.

This analysis is an outgrowth of previous research that evaluated the Army's Integrated Sustainment Maintenance program and proposed price and credit policies for Single Stock Fund (SSF), and that applied Velocity Management's (VM's) "Define-Measure-Improve" (D-M-I) methodology to the Army's logistics financial management system. It should be of interest to financial managers and logistics customers and suppliers in the Army and the Department of Defense (DoD), as well as to business organizations that use transfer pricing mechanisms to promote efficient internal allocation of resources.

The research documented here was sponsored by the Army's Deputy Chief of Staff for Logistics and conducted in the Military Logistics Program of RAND Arroyo Center. The Arroyo Center is a federally funded research and development center sponsored by the United States Army.

(Continues...)



Excerpted from Right Price, Fair Credit by Ellen M. Pint Marygail K. Brauner John R. Bondanella Daniel A. Relles Paul Steinberg Copyright © 2002 by RAND. Excerpted by permission.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
Read More Show Less

Table of Contents

Preface
Figures
Tables
Summary
Abbreviations
Ch. 1 Introduction 1
Ch. 2 Criteria for Evaluating Price and Credit Policies 5
Ch. 3 Applying Criteria to Evaluate Past, Current, and Proposed Policies 23
Ch. 4 Characteristics of an Optimal Price and Credit Policy 57
App History of the Reduced Price Initiative (RPI) 69
Bibliography 71
Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)