Supply Chain Modeling: Downstream Risk Assessment Methodology (DRAM) Summary of Development and Application
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA
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The Institute for Defense Analyses developed the Downstream Risk Assessment Methodology DRAM, for the Defense Logistics Agency Strategic Materials, to analyze supply chains of strategic and critical materials and the applications in which they are used. DRAM allows the assessment and mitigation of risks arising from vulnerabilities in supply chains that would not be revealed by analysis of the supply of and demand for raw materials alone. DRAM represents each important production step in the supply chain for a material and characterizes how it operates in terms of production capacity and material feedstock requirements. The approach is mass flow analysis, from raw material through each step in production. DRAM can also estimate supply and demand on a time-phased basis under the conditions of the National Defense Stockpile planning scenario and others of interest. It can represent material shortfall mitigation measures. DRAMs operation is demonstrated using the neodymium-iron-boron magnet supply chain. This document is a summary of IDA Document D-5347, which presents DRAM in more depth. This briefing was presented at the conference on Diminishing Manufacturing Sources and Material Shortages December 2013 and at the Military Operations Research Society Workshop, How Risk Assessments Inform National Security Decision Making October 2014.
- Logistics, Military Facilities and Supplies