Abstract

Abstract The purpose of this research is to benchmark the performance of 18 Defense Logistics Agency (DLA) supply warehouses located within the contiguous United States. DLA anticipates a reduced future workload for each of the warehouses, which translates into excess capacity and increased system inefficiency. This study used a mathematical programming tool, data envelopment analysis (DEA), to measure the relative overall efficiency of each warehouse and to determine the sources of inefficiency if they exist. With this methodology, DLA can judiciously target facilities for reduced funding or closure, which will result in the savings of millions of tax dollars.

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