Increasing Cost-Effective Readiness for the U.S. Air Force by Reducing Supply Chain Variance: Technical Analysis of Flying Hour Program Variance
[Technical Report, Research Report]
RAND PROJECT AIR FORCE SANTA MONICA CA
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The U.S. Air Force spends considerable funds to operate and support its aircraft. Between fiscal years FYs 1996 and 2011, such spending increased by more than 6 percent a year, limiting what could be spent on other priorities. One way to reduce operation and support costs is to improve the accuracy of demand forecasts. The Air Force spends about 4 billion annually to buy and repair spare parts for aircraft. Demand that runs lower than forecast levels results in excess parts demand that runs higher results in shortages and reduced readiness. One potential way to improve spare part demand forecasts is to reduce the difference between the number of flying hours that are forecast and the number that are actually flown, which is known as flying hour variance.
- Military Aircraft Operations
- Economics and Cost Analysis