Alternative Measures of Supply Performance

Fills, Backorders, Operational Rate, and NORS

by Robin B. S. Brooks, C. A. Gillen, John Y. Lu

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A description of a measure of support effectiveness that appears to be an improved predictor of the expected number of NORS (Not Operationally Ready--Supply) aircraft. Other measures of support effectiveness, such as fill rate, backorders, and operational rate, are familiar to Air Force supply personnel and computationally tractable; however, it is difficult to relate them to certain measures of effectiveness that are more operationally meaningful. The NORS criterion brings the performance measure for base supply closer to the measure for base operations; but, since it is not a separable function, item-by-item optimization with a cost constraint represented by a Lagrange multiplier is not feasible. The theorem developed in this study shows how a separable function can be optimized instead of a nonseparable function. The algorithm based on this theorem seems to have worked well in every case tried at RAND. Further research will concentrate on developing an improved algorithm for optimization.

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