Material Flows And Inventory Policy During Military Scm

1484 Words May 1st, 2016 6 Pages
Material Flows and Inventory Policy in Military SCM
According to Major Joshua M. Lenzini in his article Anticipatory Logistics: The Army’s Answer to Supply Chain Management, “Supply chain management is similar for both corporate and military organizations. However, some significant differences are evident in these models. The first is the absence of maintenance on the corporate model. Another is that transportation, distribution, and warehousing are unidirectional in the corporate model but dual directional in the military model (see Figure 3, Lenzini, 2002)).” This backward flow is called reverse logistics, and although it is not unique to military supply networks it is uniquely critical.

Figure 3: Schematic of differences for Corporate (left) and Military (right) SCM (Lenzini, 2002).

Reverse logistics constitutes the value recovery process for reparable spares. It is important because theoretically is has considerable impact on the supply chain as it is the feedback loop. The reverse stage starts from the military units, to the maintenance depots, and then back to the forward supply chain to the units. The responsiveness of the reverse pipeline then becomes crucial to support sustained operations when higher-than-expected failure rates in equipment occur, resulting in temporary spikes or sustained surges in demand. Recent data analysis indicates that the ratio of issues-to-returns across deployed units is highly variable, ranging between 40 percent and almost 100…
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