Strategic Stockpiling and Substitution.
Abstract
This report analyzes the strategic stockpiling methodology used by the Federal Preparedness Agency. A number of limitations of the existing approach are discussed. For example, the basic planning approach does not consider the likelihood of an emergency. This omission is justified only if substitution is not possible. Yet, there is evidence that the economy is capable of a flexible response to an emergency. Thus, an approach is suggested which explicitly accounts for the likelihood of an emergency. Currently the demand for strategic materials is estimated using a model of a peacetime market economy with only a limited allowance made for substitution in production. The estimates the supply of strategic materials may also be inadequate as the current procedure ignores the use of price mechanism to activate increases in supply. A major conclusion is that the variegated nature of strategic materials seems to imply that a more detailed analysis of each material's demand and supply characteristics be accomplished before a stockpile decision is made. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1978
- Accession Number
- ADA052719
Entities
People
- Gregory G. Hildebrandt
- John P. Bloom Jr
Organizations
- United States Air Force Academy