An Evaluation of Contract Termination Models for Secondary Items in Long Supply
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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This study discusses the use of decision models by the U.S. Navy in determining whether or not to terminate contracts for secondary items which have been identified as being long supply. Long supply for this thesis is defined as those items which are in excess of forecasted requirements and have one or more outstanding contracts either initiated or awarded. The decision variables and parameters used in the Chapman Termination Model and the Naval Supply Systems Commands termination model are evaluated in an attempt to determine the feasibility of using each in a working environment at the Navy Aviation Supply Office. The Chapman Termination Model is determined to be an unsuitable model due to the assumptions it makes regarding the availability of certain data, the timeliness of actions, and the relationship between the item manager and the buyer. Recommendations are given for the combining and implementation of the Naval Supply Systems Commands model with the Online Requirements Determination Model currently used by the Navy Aviation Supply Office to form one decision model which could be used by item managers at both Navy inventory control points.
- Logistics, Military Facilities and Supplies