EVALUATING INVENTORY POLICIES OF CLASS IX ITEMS IN THE USMC-DLA LOGISTICS SYSTEM
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Authors
Rivera, Peter J.
Subjects
repair parts
centralized logistics
logistic flexibility
inventory management
centralized logistics
logistic flexibility
inventory management
Advisors
Kress, Moshe
Atkinson, Michael P.
Date of Issue
2020-03
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
The U.S. Marine Corps utilizes its Supply Management Units (SMU) to provide Class IX repair parts support for the Marine Expeditionary Forces. These SMUs work with the Defense Logistics Agency to maintain an inventory of Class IX items that meets customer demand. Each SMU calibrates the inventory levels for each of its repair parts by adjusting several parameters: reorder point (ROP), time between inventory inspections (TBI), and requisitioning objective (RO). ROP and TBI determine when the SMU should replenish its inventory, and the RO determines how much should be ordered. Although current practice has allowed the SMUs to meet customer demand, due to budget cycle pressure and inaccurate parameter setting, parts overages and shortages occur. These lead to issues such as returning unordered materiel for reduced credit, increased inventory overhead costs, and longer customer wait times. This thesis constructs a stochastic simulation model using Simio to investigate if there are more efficient inventory policies than the SMUs’ current practice. The research focuses on customer wait time and aims to provide recommendations on inventory policies to the SMUs.
Type
Thesis
Description
Series/Report No
Department
Operations Research (OR)
Organization
Identifiers
NPS Report Number
Sponsors
HQMC DC I&L, LP
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.