Targeted Use of Theater Inventory to Effectively Sustain Overseas Forces While Minimizing Supply Chain Costs

摘要

During Operation Iraqi Freedom (OIF), the high costs of air shipments have garnered attention. There have been calls to send fewer items by airlift and instead to transport the items to units by low-cost but slow sealift. In some cases, these calls have led to such a shift, resulting in lower cost but worse support, as expected. However, this choice between cost and performance need not be made. With an effective overall distribution network design that is continually monitored and updated, rapid response can be delivered at low total cost, with different items shipped via the ideal mode for each type of item, i.e., the method that meets customer response needs at the lowest total distribution cost possible. A key component of an effective distribution network to support overseas units is the targeted use of centralized theater inventory for example in Kuwait to support units in U.S. Central Command (CENTCOM) with replenishment of stocks via sealift. Selected use of theater inventory in conjunction with a targeted mix of airlift and sealift enables optimal support.