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Dollar Cost Banding - A New Algorithm for Computing Inventory Levels for Army Supply Support Activities

Distribution Management (DM), formerly known as Velocity Management (VM), is an Army initiative to dramatically improve the performance of key logistics processes: distribution, repair, stockage determination, and financial management. This monograph describes how the then Velocity Management initiative was used to develop and implement a new algorithm for computing inventories maintained by Army supply support activities (SSAs). The new algorithm is called dollar cost banding (DCB), and it departs in important ways from the methodology that the Army had been using. First, rather than using a single qualification logic for all items, the decision of whether an item qualifies for.