Cover image for Transfer pricing for air force depot-level reparables
Transfer pricing for air force depot-level reparables
Baldwin, Laura H., 1967-
Personal Author:
Publication Information:
Santa Monica, CA : Rand, [1998]

Physical Description:
xx, 97 pages ; 23 cm
General Note:
"Prepared for the United States Air Force."

"Project Air Force"--Cover.

"MR-808-AF"--P. [4] of cover.
Subject Term:
Added Author:
Format :


Call Number
Material Type
Home Location
Central Library UG1103 .B35 1997 Adult Non-Fiction Central Closed Stacks-Non circulating

On Order



The Air Force implemented stock funding to manage most depot-level reparables in FY 1992. The market-like system was intended to provide customers with incentives to make cost-effective repair decisions at the local level.

Table of Contents

Prefacep. iii
Figuresp. vii
Tablesp. ix
Summaryp. xi
Acknowledgmentsp. xvii
Acronymsp. xix
Chapter 1 Introductionp. 1
Organization of the Reportp. 4
Chapter 2 The Role of DLR Prices in Decisionsp. 5
Wingsp. 5
Customer Commandsp. 8
Depot Repair Shopsp. 10
Air Staffp. 12
Chapter 3 Structure of DLR Pricesp. 15
Depot Repair Costp. 16
Surchargep. 18
Exchange Prices Are Artificially Highp. 20
Chapter 4 Problems with the Current Pricing Systemp. 25
Resource Allocation Decisionsp. 25
Level of Repairp. 25
Condition of Carcassesp. 28
Visibility of Costsp. 31
Recovery of Total Costsp. 32
Chapter 5 Recommendationsp. 35
Pricing Strategiesp. 35
Recommended Structure of DLR Pricesp. 38
DLR Prices Should Not Include a Surchargep. 39
DLR Prices Should Reflect the Marginal Cost of Transactionsp. 41
Wings and Depot Repair Shops Are Not Customers for Some Depot Servicesp. 48
Pipeline Inventory Fees Can Be Used for Rewards and Penaltiesp. 48
General Implementation Issuesp. 49
Chapter 6 Conclusionsp. 53
A. A Review of the Economics and Accounting Literature on Internal Transfer Pricesp. 57
B. Derivation of Pricing Recommendationsp. 69
Bibliographyp. 95

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