Navy Inventory Management Decision-Making
Navy Inventory Management Decision-Making

Author: Steven D. MacDonald

Publisher:

Published: 1997-03-01

Total Pages: 85

ISBN-13: 9781423572428

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The General Accounting Office (GAO) has stated that the Department of Defense (DoD) believes it is better to overbuy inventory items than to manage with just the right amount of stock. This thesis asserts that Navy inventory managers do not have a general tendency to overbuy items, but rather make rational purchasing decisions influenced and motivated by the environment of rewards and penalties in which they work. It is also asserted that Navy inventory managers are risk adverse due to the nature of their environment. Personal stockout costs are examined as one of the key factors influencing decision-making and risk adverse behavior. This thesis introduces a conceptual model that describes the Navy inventory management decision-making environment. This model shows the relationship between personal stockout costs, required service levels, cost considerations, and planning horizons across the different decision-making levels in the Navy. This study concludes that readiness-based performance measures must be changed to incorporate a cost focus, and that the risk facing inventory managers due to personal stockout costs needs to be reduced to change their behavior of lower inventory levels are desired.

Defense Logistics
Defense Logistics

Author: William M. Solis

Publisher: DIANE Publishing

Published: 2009-11

Total Pages: 69

ISBN-13: 1437912486

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In 2001, the DoD identified performance based logistics (PBL) as the preferred weapon system support strategy. Within DoD, PBL is the purchase of performance outcomes, such as system availability, rather than the purchase of individual elements of logistics support -- such as parts, repairs, and engineering support. Although PBL initially arose from efforts to reduce support costs, questions have arisen about whether PBL has reduced support costs as originally intended. This report evaluates the extent to which DoD has used business case analyses to guide decisions related to PBL arrangements and the impact PBL arrangements have had on weapon system support costs. Includes recommendations. Charts and tables.

An Improved Inventory Control Model for the Brazilian Navy Supply System
An Improved Inventory Control Model for the Brazilian Navy Supply System

Author: Artur L. Santana Moreira

Publisher:

Published: 2001-12

Total Pages: 69

ISBN-13: 9781423549932

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Inventory managers in the Brazilian Navy for decades have faced the difficult task of establishing policies and controls to maintain readiness at the highest possible level. The task is difficult because the inventory system contains more than 500,000 items, and many of these items must be procured from overseas. Every year, inventory managers must allocate millions of dollars to buy inventory to support the fleet, and until recently the process has been almost entirely devoid of algorithmic support. We propose a new method for allocating a budget to buy inventory items in the Brazilian Navy. We compare our method with the current one and with an improved version of it. Our results suggest that our method could significantly improve supply readiness in the Brazilian Navy.