EOQ (Economic Order Quantity) Item Mission Impact Analysis
AIR FORCE LOGISTICS MANAGEMENT CENTER GUNTER AFS AL
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The AFLMC was tasked to develop an item mission-impact coding scheme that is compatible with DoD guidance. The objective of our analysis was to develop an item mission-impact coding technique and to determine the operational, stockage and cost impact of applying mission-impact codes to existing retail level inventory policy. We developed a new technique which uses the Stockage Priority Code SPC and is updated with the Urgency Justification Code UJC from an issue request. The resulting mission-impact codes comply with the DoD standards set by Military Standard 1552A. We identified five retail level uses for mission-impact coding. The uses are to a Determine what items to buy with limited investment funds, b Determine the range of stock, c Increase the depth of stock, d Interface with wholesale essentiality coding programs like the Defense Logistics Agency Weapon System Support Program WSSP, and e Identify items to use with capability assessment and aircraft availability models. We showed, by increasing the safety level for high mission- impact items, we can reduce grounding incidents by 1.65 and increase the fill rate by 2.5 for consumable items. We recommended our coding scheme be submitted for DoD approval and be implemented for both consumable and reparable items.
- Administration and Management
- Logistics, Military Facilities and Supplies