Optimizing Cost Versus Time Shipping of U.S. Navy Retrograde Materiel
Abstract
The Naval Inventory Control Point (NAVICP) provides program and supply support for the weapons systems that keep our Naval forces mission ready. NAVICP conducts more than 380,000 repair actions annually to keep sufficient repair parts available or ready for issue to the fleet upon demand. These repair actions have totaled $3.08B in shipping and redistribution costs of Not Ready for Issue (NRFI) materiel. This thesis models the NAVICP shipping of unserviceable but repairable (retrograde) Navy materiel or Depot Level Repairables (DLRs). It develops an integer linear program to prescribe minimum cost shipment recommendations of DLRs from fleet to repair locations within the NAVICP and Defense Logistics Agency (DLA) distribution system subject to constraints on average shipping time (AveTime). NAVICP provided data on DLR shipments for one year from which we construct six representative DLRs, 3 of aviation and 3 of maritime cognizance. We find a cost and time savings can be achieved for all representative DLRs by avoiding the use of DLA as storage prior to induction for repair. In this study we compare shipping costs for each of the six DLRs when we constrain AveTime, from 2 to 8 days. We find 2-day constrained AveTime shipping, on average, costs 18 times that of 7-day AveTime shipping, twice that of 3-day shipping and a minimum of 5 times and a maximum of 11 times that of the costs of 4 through 6-day shipping.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 2005
- Accession Number
- ADA432652
Entities
People
- Charles W. Colbert
Organizations
- Naval Postgraduate School