Thursday, December 29, 2011

PRC Opinion on USPS Planned Closings


http://www.washingtonpost.com/politics/postal-services-closure-review-process-was-flawed-panel-says/2011/12/28/gIQA5oHNNP_story.html
The Postal Regulatory Commission has issued an advisory opinion on the Postal Service plan, called the Postal Service Retail Access Optimization Initiative (RAOI), to close 3,600 post offices.  The PRC’s primary finding was that the RAOI was not designed to optimize the network, so the very process was flawed; it used questionable data to identify the post offices that might be closed and lacked sufficient data and analysis to make the best decisions.   For example, the program ignored whether an alternate post office was nearby and which closures would reduce costs.  The PRC recommended the use of modern optimization tools and techniques to maximize net retail revenues while fulfilling statutory obligations.