Collocating Air Force Weapon Systems Inventory with the Defense Logistics Agency Premium Service Facility

Currently, most Air Force managed assets are warehoused either at a Defense Logistics Agency (DLA) facility collocated with Air Logistics Centers or in retail base supply accounts. The level of inventory required partially depends on a computation based on average order and ship times. DLA, in partnership with Federal Express, operates a Premium Service facility collocated with the Federal Express hub in Memphis, Tennessee. Warehousing and distribution processes at this facility trim at least one day of order and ship time resulting in a potential of reducing Air Force wholesale inventories. This paper explores processes, considers eligible inventory types, and conducts a simple cost comparison for wholesale inventories. The author concludes there is potential for significant savings if the Air Force places high-value inventory at the Premium Service facility.