Inside Logistics - Exploring the Heart of Logistics, Volume 23, Number 3, 1999. Collocating Air Force Weapon Systems Inventory with the Defense Logistics Agency Premium Service Facility,
Abstract
With declining defense budgets and the inherent responsibility as stewards of taxpayer dollars, the Services must continue to search for more efficient processes while ensuring the mission can be accomplished. As a result of the Reagan military buildup and subsequent military drawdown, the Services have been tasked to right size based on new force structure and inventories. In 1990, Defense Management Report Decision 987 directed the Services to set specific inventory reduction goals The Air Force Was tasked to reduce its inventory level by $21B over 12 fiscal years. One way the Air Force has chosen to reduce costs but maintain warfighting capabilities in the logistics arena is by transitioning from a supply or inventory-based system to a transportation-based system. This article explores the possibility of improving the average order and ship time (O&ST) of Air Force-managed secondary items (spares) through the concept of collocating them with commercial carrier transportation hubs such as Federal Express (FedEx) in Memphis, Tennessee. Though quantification is not yet a science in Air Force materiel management, the Air Force spares value has been estimated in the range of $40M to $60M per day of inventory. With inventory values of this nature, collocating assets with commercial express carrier hubs may present an opportunity for significant savings.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1999
- Accession Number
- ADA369470
Entities
People
- Monte J. Murphy
Organizations
- Air Force Logistics Management Agency