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One of the tools the Air Force is using to improve its logistical support to the warfighter is purchasing and supply-chain management (PSCM). But other factors likely were changing at about the same time, which might influence the relationship of the PSCM initiative to the supply chain’s ability to support the warfighter. To evaluate whether PSCM is doing what it is intended to do, and how well, it is necessary to control for these other factors that may be influencing its outcomes. The authors have taken a step in that direction by developing an econometric model that isolates certain identifiable factors and holds them constant as a means of separating their effects from PSCM. They illustrate their model by analyzing the relationship between PSCM and Mission Capable (MICAP) incidents. The authors considered several different factors but found data availability and quality to be a challenge. However, the model may be useful both with other factors and for estimating the benefits of other initiatives.

Table of Contents

  • Chapter One

    Introduction

  • Chapter Two

    Background and Motivation

  • Chapter Three

    Model Methodology and Data Requirements

  • Chapter Four

    Applying the Model to an Examination of MICAP Incidents

  • Chapter Five

    Results from Econometric Models

  • Chapter Six

    Conclusions

  • Appendix

    PSCM Contract Data

Research conducted by

The research described in this report was sponsored by the United States Air Force and conducted by RAND Project AIR FORCE.

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