USMC inventory control using optimization modeling and discrete event simulation

Abstract

Marine Corps Installation and Logistics Command is seeking assistance to improve operations within Marine Corps Maintenance Production plants. The problem addressed in this thesis deals with production lines: there must be a proper balance of parts on hand and inventory costs to ensure optimal production output. This problem becomes increasingly difficult to solve as production-line complexity increases and overall budget flexibility decreases. As the Marine Corps enters a time of fiscal austerity and reduced overseas combat operations, it is critical to optimize its processes so major end items are refurbished in the quickest and most cost-effective manner, thereby ensuring maximum combat effectiveness. This research focuses on developing a proof of concept analytical tool to better facilitate order management of repair parts. This tool integrates optimization and discrete-event simulation. This construct can potentially provide an effective means in improving order management decisions. However, the effectiveness of the tool is contingent on accurate vehicle condition history, parts order history, and/or future estimated parts shipping dates. Information derived from the analysis can be used to make recommendations for reorder policy, enable future model development, and improve the overall maintenance production process.