Read an Excerpt
Right Price, Fair CreditCriteria to Improve Financial Incentives for Army Logistics Decisions
By Ellen M. Pint Marygail K. Brauner John R. Bondanella Daniel A. Relles Paul Steinberg
Rand CorporationCopyright © 2002 RAND
All right reserved.
PrefaceThis 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.
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.