Diminished Manufacturing Source: A Common Sense Approach to RequirementsDetermination for Life-of-Type Procurement

摘要

This thesis studied the reasons for over procurement in the case of long termsupport for Diminished Manufacturing Source (DMS) items of supply at the Defense Electronics Supply Center at Dayton, Ohio. A sample of 351 DMS items was selected for analysis. Fifteen percent of the items were deficient in stock primarily as a result of increased demands after the final LOT buy was made. Trend analysis reveals that 75% of DMS items experience declining demand rates both before and after the declaration of DMS. To test the effects of reducing LOT quantities all past LOT buys were reduced by 10%, 33% and 50% and checked against past demands. New stocks were noted as a result of reductions in LOT buys. Since the forecasting of future demands is inacurate, this study recommends a common sense approach of 10% reductions to demand based LOT buys for DMS items of supply. Additionally, the increased use of a 40-quarter demand forecast is encouraged to better identify those items with increasing demands. For those items already procured which experience increasing demands after the DMS final buy, a new effort is recommended to find new sources of supply. Keywords: Military procurement, Theses, Requirements, Long-Term support, Inventory control, Inventory analysis, Sources, Electronic equipment. (rwj)