Inventory funding methods on navy ships: NWCF vs. end-use

Abstract

The purpose of this research is to determine the applicability of Navy Working Capital Fund repairable inventory on small combatant platforms. The majority of these platforms are funded, as of June 2013, using appropriated Operating Target funds. This project analyzes NWCF versus end-use funded inventories using data from the pilot project launched by Commander Naval Surface Forces East on USS Normandy (CG 60) in 2008. We use supply effectiveness and financial data to identify if there is an inventory readiness gap between the two sources of funding, and compare and contrast performance with other CNSF Guided Missile Cruiser and Amphibious Assault class ships. From this analysis, we identify the advantages and disadvantages of both NWCF and end-use inventories and provide an impact matrix for the three major stakeholders: the ship, the Type Commander, and the Navy. We also provide a recommendation to Naval Supply Systems Command on the future implementation of these methods for existing and future classes of small combatants, specifically, Zumwalt-class destroyers.