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Suggested Citation:"TABLE OF CONTENTS." Transportation Research Board. 1995. Inventory Management for Bus and Rail Public Transit Systems: Final Report. Washington, DC: The National Academies Press. doi: 10.17226/6352.
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Suggested Citation:"TABLE OF CONTENTS." Transportation Research Board. 1995. Inventory Management for Bus and Rail Public Transit Systems: Final Report. Washington, DC: The National Academies Press. doi: 10.17226/6352.
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Suggested Citation:"TABLE OF CONTENTS." Transportation Research Board. 1995. Inventory Management for Bus and Rail Public Transit Systems: Final Report. Washington, DC: The National Academies Press. doi: 10.17226/6352.
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Suggested Citation:"TABLE OF CONTENTS." Transportation Research Board. 1995. Inventory Management for Bus and Rail Public Transit Systems: Final Report. Washington, DC: The National Academies Press. doi: 10.17226/6352.
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TABLE OF CONTENTS ACKNOWLEDGMENTS ABSTRACT ..eeeeeeeeeeeee.eeeee............ S1~MARY ... e e e e e e e e e e e e e e e e e e e e e e e e e ..... APPROACH.eeeeee.eeeeeee .eeeee ' Organizational Profiles .. Performance Indiceseeeeeeeeeeeeeee Effect of Organizational Structure on Inventory Performance.. FINDrNGS AND CONCLUSIONS................................... L IN 1 HODUCTION AND RESEARCH APPROACHe.~e 1 1.1 THE NEED TO BETTER UNDERSTAND, EVALUATE AND MANAGE INVENTORY IN PUBLIC TRANSIT ORGANIZATIONS ee ..eeeeeeee~eeeeeeeeeeeeeeeeee ~eeeeeee~eeeeee. eeeeee~eeeee .~. 1 1.2 RESEARCH OBJECTIVES 2 1.3 SCOPE OF THE STUDY 2 led RESEARCH APPROACH 1.4. 1 Transit Svstem Survev..~. l.4 ORGANIZATION OF THE REPORT eeeeeeeeee eeeeeee.eeeeeeeeee e 4 II. CRITICAL ISSUES IN INVENTORY MANAGEMENT eeeea~eeeeeeeeeeeeeeeeeeeeeeeeeeeeeee.eeeeeeeee. 5 2.1 TRANSIT SYSTEMS AND INVENTORY MANAGEMENT 5 2.2 PROFILE OF THE INVENTORY CONTROL ISSUES IDENTIFIED IN THE SURVEY . 6 2.2. 1 Agency Service Area and Operating Characteristics....................................................... 2.2e2 Vehicle Fleet Composition 2.2.3 Inventory Management Organizational Structure, Responsibilities and Reporting RelationshiDs . .6 .6 2.2.4 Inventory Management Practices 7 2.2.4. 1 Inventory Management Goals and Objectives 7 2.2.4.2 Storekeeping 8 2.2.4.3 Inventory Management and Replenishment ............................................................. 2.2.4.4 Catalog/Parts 9 2.2.5 Inventory Management Perforrnance 10 2.2.6 Technology and Information Systems 1 1 2.3 GENERALLY ACCEPTED DEFINITION OF INVENTORY 1 1 IIL ORGANIZATIONAL STRUCTURES FOR TRANSIT SYSTEM INVENTORY MA NA ~F'.M~.NT .9 .. ~ . . _~ am. ~ 13 3.1 ORGANIZATION PROFILES

3. 1. 1 Organization Profile #1: No Formal Inventory Management Function -- Inventory Responsibility is Located in the Maintenance Department 1 5 3.1.1.1 Organization 15 3.1.1.2 Inventory Management Practices 16 3.1.1.3 Inventory Performance 16 3.1.1.4 RelativeMents 17 3 . 1 .2 Organization Profile #2: Formal Inventory Management Function -- Inventory Responsibility is Located in a Department Other than Maintenance at the Sub-Department Leveler a ~e eeeee-~e ee~ 3. 1 .2. 1 Organization e e.e.e eeeee e 1 8 3.1.2.2 Inventory Management Practices 18 3.1.2.3 Inventory Performance 18 3.1.2.4 RelativeMerits l9 I. 1 .3 Organization Profile #3: Formal Inventory Management Function -- Inventory Responsibility is Located in the Maintenance Department 3.1.3.1 Orgariization e 3.1.3.2 Inventory Management Practices 19 19 20 3.1.3.3 Inventory Performance 21 3.1.3.4 Relative Ments 21 3.1.4 Organization Profile #4: Formal Inventory Management Function -- Inventory Responsibility is Located in a Department Other than Maintenance 21 3 . 1 .4 . 1 Organization ~ e e e · 3.1.4.2 Inventory Management Practices 3.1.4.3 Inventory Management Performance _ 3.1.4.4 Relative Ments 23 3.1.5 Organization Profile #5: Formal Inventory Management Function -- A Single Dedicated Inventory Management Group at the Department Level 24 3.1.5.1 Organization 24 3. 1 .5.2 Inventory Management Practices 25 3.1.5.3 Inventory Management Performance 25 3.1.5.4 Relative Ments 25 IV. PERFORMANCE INDICES FOR ASSESSING INVENTORY MANAGEMENT 27 4.1 INVENTORY MANAGEMENT PERFORMANCE OBJECTIVES 27 4.2 PUBLIC TRANSIT INVENTORY MANAGEMENT PERFORMANCE INDICATORS 28 4.2. 1 Use of Inventory Management Performance Indicators -- Survey Response 28 4.2.2 Definition and Calculation of Performance Indicators 29 4.2.3 Inventory Performance Indicators Used for Benchmarks 35 4.3 THE ELECT OF TRANSIT AGENCY AND FLEET CHARACTERISTICS ON PERFORMANCE INDICATORS 36 4.3. 1 Objectives for Analyzing Agency and Fleet Characteristics 36 4.3.2 Methodology for Analyzing Agency and Fleet Characteristics 4.3.2. 1 Correlations for Numerical Data 37 4.3.2.2 l-Tests for Category Data 37 4.3.3 Effect of Transit Agency Characteristics on Inventory Performance Indicators 38

4.3.3. 1 Service Area - Urban/Suburban/Rural 38 4.3.3.2 Service Area - Population 40 4.3.3.3 Agency Operating Cost 4.3.3.4 Material Purchases by Mode 4.3.3.5 Annual Passenger Miles by Mode 4.3.3.6 Summary of Agency Profile Effects on Inventory Performance Indicators 42 4.3.4 Effect of Fleet Profile Characteristics on Inventory Performance Indicators 43 4.3.4. 1 Differences Between Bus and Rail (Mode) 43 4.3.4.2 The Effect of Fleet Size -- Number of Vehicles 44 4.3.4.3 The Effect of the % of Fleet that is Manufactured in the US 4.3.4.4 The Effect of the Number of Different Vehicle Models 45 4.3.4.5 The Effect of Average Vehicle Age 4.3.4.6 Average Annual Miles 45 4.3.4.7 Summary of Fleet Profile Effects 45 4.3.5 Benchmark Decision Modeling Guide 46 4.4 BENCHMARK VALUES FOR PERFORMANCE INDICATORS 4.5 INVENTORY PERFORMANCE INDICATORS IN OTHER INDUSTRIES 47 V. TElE EFFECT OF ORGANIZATIONAL STRUCTURE ON INVENTORY MANAGEMENT PERFORMANCE 49 5. 1 ORGANIZATIONAL STRUCTURE AND INVENTORY MANAGEMENT DECISIONS49 5. I. 1 Organizational Structure and Inventory Management Decision Factors 49 5.1.2 Transit Agency and Fleet Charactenstics 50 5. 1 .3 Inventory Performance Indicators ·~ eeee~eeeeeeeeee~eeeeeeeee~ e 50 5.2 METHODOLOGY FOR ANALYZING ORGANIZATIONAL EFFECTS 51 5.2. 1 Preparing Survey Data for Analysis ·~ --eeeeeeeeeeeeeeeeeeeee~ee~ ----eeeeeee----------- 5 1 5.2.2 Statistical Analysis Methods ·~ eeeeeeeeeee~ aeon eeeeeeeeeee~ eeeeeeeeeeeeea~e 52 5.3 THE EllL;CT OF ORGANIZATION & INVENTORY MANAGEMENT DECISIONS... 54 T~*r~_e C,.~= ~ ~ ant C ~ 1 ~n`'Dnt.~, {:tO~;n~r ~ I! 5.3.2 OrganizationalStructureType 5.3.3 Inventory Management Goals 5.3.4 Inventory Replenishment Methods 5.3.5 Inventory Purchasing Practices: 64 5.3.6 Storehouse Configuration and Coverage 65 5.3.7 Published Procedures and Catalog: 67 5.3.S Physical Inventory/Cycle Counting: 68 5.3.9 RepairandStockingofComponents: 68 5.3.10 Use of Systems and Technology: 6g 5.4 RELATIONSHIPS BETWEEN INVENTORY ORGANIZATION MANAGEMENT DECISIONS AND INVENTORY PERFORMANCE 70 5.4. I. Bus Inventory Dollars per Vehicle 71 5.4.2. Rail Inventory Dollars per Vehicle 72 5.4.3. Annual Bus Inventory Turnover 72 5.4.4. Annual Rail Inventory Turnover 72 5.4.5. Bus Percent Demand Filled (Fill Rate) 73

5.4.6. Rail Percent Demand Filled (Fill Rate) 73 5.4.7. Percent of Items Stocked Out per Week 74 74 Average Days to Fill Rail Inventory Backorders 7S U~_. ~" m..' ^~alq^~^ 5.4.~. Average Days to Fill Bus Inventory Backorders 5.4.9. 5.4.10. 5.4.11. 5.4.12. 5.4.13. Total Inventory Dollars per Person 76 5.4. 14. Inventory Personnel Cost per Inventory Dollar 5.4. 1 5. Total Inventory Transactions per Person 77 5.5 CONCLUSIONS APPENDIX A-- BIBLIOGRAPHY APPENDIX B -- SURVEY Percent Obsolete Bus Inventory...... Percent Obsolete Rail Inventor....... _ . _ ·. ~ 75 76 77

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