Accession Number:

ADA616877

Title:

Advancing Cost-Effective Readiness by Improving the Supply Chain Management of Sparse, Intermittently-Demanded Parts

Descriptive Note:

Doctoral thesis

Corporate Author:

AIR FORCE INSTITUTE OF TECHNOLOGY WRIGHT-PATTERSON AFB OH GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT

Personal Author(s):

• Gehret, Gregory H.

Report Date:

2015-03-26

Pagination or Media Count:

125.0

Abstract:

Many firms generate revenue by successfully operating machines such as welding robots, rental cars, aircraft, hotel rooms, amusement park attractions, etc. It is critical that these revenue-generating machines be operational according to the firm s target or requirement thus, assuring sustained revenue generation for the firm. Machines can and do fail, and in many cases, restoring the downed machine requires spare parts, which are typically managed by the supply chain. The scope of this research is on the supply chain management of the very sparse, intermittently-demanded spare parts. These parts are especially difficult to manage because they have little to no lead time demand thus, modeling via a Poisson process is not viable. The first area of our research develops two new frameworks to improve the supply chain manager s stock policy on these parts. The stock polices are tested via case studies on the A-10C attack aircraft and B1 bomber fleets. Results show the AF could save 10Myear on the A10 and improve support to the B1 without increasing inventory. The second area of our research develops a framework to integrate the supply chain processes that generate these service parts. With the integrated framework, we establish two new forward-looking metrics. We show examples how these forward-looking metrics can advance the supply chain manager s desire to know what proactive decisions to make to improve hisher supply chain for the good of the firm.

Descriptors:

• *COST EFFECTIVENESS
• *LOGISTICS MANAGEMENT
• *MILITARY PROCUREMENT
• DEMAND(ECONOMICS)
• HEURISTIC METHODS
• METRICS
• OPERATIONAL READINESS
• POLICIES
• SPARE PARTS

Subject Categories:

• Administration and Management
• Economics and Cost Analysis
• Logistics, Military Facilities and Supplies

Distribution Statement:

APPROVED FOR PUBLIC RELEASE