Investigating the relationship between customer wait time and operational availability through simulation modeling

Abstract

Customer Wait Time (CWT) measures all supply chain processes, from the time a customer places an order until the item is delivered. The Marine Corps intermediate supply activity, the Supply Management Unit (SMU), has the primary task of reducing the amount of time it takes for the operating forces to receive supplies by stocking items close to the warfighter. Such forward positioning of repair parts shields the operating forces from delays found at the wholesale inventory level, thereby increasing the material readiness of the operating forces. Intuitively, decreasing CWT increases operational availability (Ao), but the degree and magnitude of this relationship has yet to be quantified. This lack of understanding pertaining to the relationship between Ao and CWT has led to arbitrary stock policies that do not account for the cost and benefit they provide. This project centers on monetizing the relationship between these variables through simulation modeling, and provides a tool whereby stock determination can be made based on desired end states.