Research Brief
Targeted Use of Theater Inventory to Effectively Sustain Overseas Forces While Minimizing Supply Chain Costs
Nov 29, 2011
Leveraging Complementary Distribution Channels for an Effective, Efficient Global Supply Chain
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DoD makes use of five different distribution channels to sustain U.S. military forces overseas. Three are air delivery channels and two are by sea. These channels offer varying speeds of delivery and have different costs. In addition to these variables, there are certain practical constraints that must be taken into account in making choices among channels, and for surface transportation, the marginal cost of additional inventory must also be considered. In this briefing, we analyze the implications of all these factors for how the channels should be used — which transportation modes should be chosen and where materiel should be stocked — to provide effective support as efficiently as possible. We describe the distribution choices for some illustrative units in Iraq and compare them with the ideal model resulting from our analysis. We find that, through gradual evolution, the sustainment structure for Iraq is beginning to match the model. We offer several guidelines for improving sustainment in the near term by bringing current practices closer to the ideal.
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Table of Contents
Chapter One
Leveraging Complementary Distribution Channels
Chapter Two
Major Distribution Channels
Chapter Three
Capability and Cost Tradeoffs
Chapter Four
Ideal Distribution Channel Roles
Chapter Five
Current Support Structure Design: A Unit View
Chapter Six
Routes to Improvement: Unit View
Chapter Seven
Current Support Structure Design: An Item View
Chapter Eight
Improvements and Future Needs
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The research described in this report was sponsored by the United States Army and conducted by the RAND Arroyo Center.
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