The Effect of Consolidating Two-Level Reparable Inventories on Aggregate Inventory Requirements and Mission Capability.
Abstract
One of the proposals of Lean Logistics is the relocation of many inventory assets to Intermediate Supply Points (ISPs). This research investigates the effect of consolidating Two Level Maintenance designated reparable asset inventories. The effects of interest are the potential reduction in aggregate inventory requirement and resulting savings and the effect of delayed issue of the assets on mission capability. The metric selected to measure the effect on mission capability for this study is the Not Mission Capable/Supply (NMCS) rate. A spreadsheet analysis of world-wide Two-Level Maintenance designated reparable asset demands over the study period is used to determine the effects of consolidation. The results of this study indicate that significant savings in reparable inventory requirements could be achieved through consolidation of these inventories. Further, this research indicated that the increase in NMCS rates resulting from overnight issue of the assets would be minimal. This research concludes that conditions that mandated base level stockage of reparable assets have changed and are no longer a factor in the post cold war environment. Due to these changes, and the current constraints on the defense budgets, consolidation of reparable assets is a concept with potential for significant inventory reductions and savings that should be further developed.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1995
- Accession Number
- ADA301375
Entities
People
- Glenn R. Barney
Organizations
- Air Force Institute of Technology