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GGD-76-84 1 (1976-04-30)

handle is hein.gao/gaobaaams0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE <)U0 WASHINGTON, D.C. 20548 GENERAL GOVERNMENT D~IVISION B-114874 APR 3 0 1976 The Honorable Robert Dole United States Senate Dear Senator Dole: This report is in response to your February 11, 1976, request that we examine a study entitled Analysis of a U.S. Postal Service Facility's Contract Routes (Topeka, / Kansas). The study, conducted by Dr. Leonard W. Schruben and Mr. Dennis R. Schmidt, maintains that the U.S. Postal Service could save millions of dollars annually on con- tracted mail delivery services by using computer-designed vehicle routes and schedules. In July 1974, and again in November 1975, we reported to the Service that savings could be realized throuah im- proved scheduling of contracted mail delivery routes. We believe that the concept of computer-designed routes is feasible and could assist in lowering transportation costs. The Service has also recognized computer assistance as a means of reducing its costs. Several years ago the Service began studying the fea- sibility of computer-designed vehicle routes and schedules. Today, the Service is testing a program virtually identical in concept to the Topeka study in that both propose using computer assistance. Until recently, Service headquarters officials were not aware of the Topeka study. However, they stated they intend to determine if the study could contribute to their own efforts. POTENTIAL FOR SAVINGS IN VEHICLE ROUTING The Service uses contracted vehicle service as one means to transport the mail between postal and private fa- cilities. The majority of the contracts, referred to as star routes, are for moving mail between cities and between -GGD-76-84

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