When demand for an item declines, inventories are pushed to disposal for cost savings. But is disposal really cost effective? Does the disposal revenue and storage cube reductions offset repurchase costs and the costs of the associated logistics?

The following is a study conducted by LMI exploring the costs associated in disposal and repurchasing, versus the costs of retention of DoD materiel. The study approaches economic retention from a risk perspective: the risk of repurchasing disposal items as well as the risk of retaining items, and the corresponding recommendations.

View the study: Economic Retention in the Department of Defense: A Risk Perspective