A multi-year ammunition procurement model for Department of the Navy non-nuclear ordnance
Bruggeman, John H.
Carlyle, W. Matthew
Brown, Gerald G.
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The Navy Non-nuclear Ordnance Requirements (NNOR) assessment determines annually the preferred inventory levels for most Navy munitions. This requirement determination is unrestricted by cost. Procurement planners must then revise multi-year purchasing recommendations that satisfy current budgetary constraints (about $2 billion annually) by subjectively imposing a series of procurement priorities. This report documents the existing manual procurement planning method, expresses this method in a mathematical model that is then optimized to mimic perfect manual planning, introduces a metric for quantifying the capability provided by a given inventory of a munition, and introduces the Assessment and Investment Model (AIM) that will suggest a multi-year purchasing plan that maximizes the capability of the inventory subject to consideration of budget, industrial base, maintenance, and NNOR requirements. When initial AIM formulations could not be solved in reasonable time with commercial optimization software, a purpose-built constructive heuristic was devised to provide quick solutions. Experience with this heuristic lead to a key insight on how to help AIM solve quickly. The Navy Ammunition Logistics Center (NALC) wants to improve the way it plans procurement recommendations. This thesis was invited by NALC and they have endorsed the metric we develop as a better quantitative assessment of inventory capability. We show that AIM procurement recommendations are superior to those of existing methods. The goal is a more combat-effective munitions inventory for any given weapon procurement budget.
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