Material Prioritization via Linear Programming (MPLP): Proof of Concept and Initial Results
Abstract
This paper develops several linear programming (LP) formulations that can be used to assess the effects of shortfalls of strategic and critical materials in a national emergency. The analysis proceeds from the basic premise that materials are valuable because they are used to produce essential goods and services. Each industrial sector of the U.S. economy is assumed to need a particular mix of materials, in particular proportions, in order to produce its output. In a national emergency, there might not be sufficient materials available (because of increased demand and/or reductions in supply) to produce all of the needed goods and services. The basic LP formulation determines how many of these goods and services can be produced if the available materials are allocated to the industrial sectors in an optimal manner. One paradoxical finding is that for some materials, not all of the available supply is necessarily used in the optimal solution, even if the material is in overall shortfall. This paper develops several additional LP formulations, including allocating a material acquisition budget. Illustrative results are presented, using data from the Department of Defense Strategic and Critical Materials 2021 Report on Stockpile Requirements.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2022
- Accession Number
- AD1197703
Entities
People
- Eleanor L. Schwartz
- Jerome Bracken
Organizations
- Institute for Defense Analyses