Cost-benefit analysis of single siting depot level maintenance for the Light Armored Vehicle

In 1998, Commander, Marine Corps Logistics Bases established the Executive Planning Group (EPG) to develop and coordinate strategy to enhance the depots' maintenance and supply capabilities in order to increase the competitiveness of their services and provide a direction for future depot operations. One of the initiatives introduced by the EPG was to conduct an analysis to determine if consolidating depot maintenance for the LAV from the current workload scenario at two depots, to a single site, results in the most efficient allocation of resources. We use spreadsheet models to conduct a comparative cost and savings analysis between the current split workload scenario and a single site scenario at each depot. We address costs and savings resulting from data such as infrastructure requirements, transportation, inventory reductions, and reduction in personnel structure requirements. We also address additional issues such as the impact on readiness and surge capacity. Our results vary significantly depending on the selection of depot for single siting. We show that single siting at one depot results in annual savings from the current workload scenario, while single siting at the other depot increases annual costs from the current workload scenario. http://archive.org/details/costbenefitnalys109459232 U.S. Marine Corps (U.S.M.C.) author. Approved for public release; distribution is unlimited.