The value of logistics information to the warfighter

Abstract

This MBA project analyzes the benefit of integrating Radio Frequency Identification (RFID) technology into the Department of Defense supply chain management infrastructure. The project confirms the existence of an inherent value in logistics information used as a resource in Department of Defense supply chain management applications. Also identified is the value of comprehensive and real time logistics information to the warfighter and what he or she is willing to pay for that information. For example, the average value the warfighter is willing to pay on a deployed aircraft carrier is 2.46% of the carrier's average annual budget, or $8 56,775. To determine these values, the project uses the results of a survey distributed to Naval Supply Corps Officers who were used as survey respondents due to their positioning as a logistics and financial choke point between the man in the foxhole and their commanding officers. Using the value that Supply Officers are willing to pay for comprehensive and real time information, a value added figure is determined for the inclusion of RFID technology in the Department of Defense supply chain management infrastructure. Continuing with the aircraft carrier example, the value added figure is $1 1.28 per requisition.