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Since the end of the Cold War, the Department of Defense has dramatically reduced its fighting forces and logistics infrastructure. The Department estimates it is spending about $59 billion a year on logistics support 1 programs to operate and sustain weapon systems, 2 but it reports that significant reductions can be achieved by adopting a variety of different logistics support practices. We reported in January 2001 that serious weaknesses persist throughout the Department's logistics activities and that it is unclear to what extent ongoing reengineering management improvement initiatives will overcome them. 3 The Department has taken a number of significant steps in recent years directed at improving its outdated and inefficient logistics processes. Specifically, the Office of the Secretary of Defense and each of the military services and appropriate Defense commands have established a number of significant logistics reengineering efforts. In addition, the Office of the Secretary of Defense developed the Fiscal Year 2000 Logistics Strategic Plan in August 1999, which outlines six overall objectives, a basic.
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GAO-02-106 Defense Logistics: Strategic Planning Weaknesses Leave Economy, Efficiency, and Effectiveness of Future Support Systems at Risk
This research provides the Air Force with a methodology for evaluating various strategies to improve the procurement of spare parts and applies the methodology to F100 engine parts. The author uses exploratory analysis techniques and system dynamic modeling to gain a better understanding of the effectiveness of various supplier management policies, including identifying those policy levers most effective in improving various measures of interest. The research shows that policy and organizational changes in the purchasing and supply management (PSM) process have the potential to improve effectiveness while maintaining or lowering costs. It also demonstrates that a system dynamic model can be an important contribution to defining, discussing, and understanding the complex interactions among policy levers and outcome measures, particularly in enhancing PSM efficiency and effectiveness.