Using Value to Manage Repair Parts

This report documents a briefing that presents a method for examining the effect that various stockage policies have on the length of time weapon replaceable assemblies (WRAs) spend waiting for parts. The authors argue that the current stockage policies — which emphasize descriptors of parts and rarely include information about the end-item that needs them — likely contribute to the simultaneous problems of long repair turnaround times (TATs) and excesses of repair parts. The report discusses an algorithm which incorporates both parts descriptors and output measures and which minimizes the expected length of time an end-item spends in repair. The authors' research suggests that through effective stockage of repair parts, the Services may be able to achieve large savings from shortening the TAT at depot, which allows more end-items to be in circulation. Furthermore, the authors' evaluations suggest that their calculations can identify weapons systems where it would make sense to stock parts and those where it would not. The calculations can be used to balance investment strategies between spending money on parts and spending it on other segments of the repair pipeline.