Improving Inventory Management of Organizational and Individual Equipment at Central Issue Facilities

Improving Inventory Management of Organizational and Individual Equipment at Central Issue Facilities

Carol E. Fan
Elvira N. Loredo
Copyright Date: 2013
Published by: RAND Corporation
Pages: 90
https://www.jstor.org/stable/10.7249/j.ctt5hhtzt
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  • Book Info
    Improving Inventory Management of Organizational and Individual Equipment at Central Issue Facilities
    Book Description:

    Army Central Issue Facilities do not have a formal mechanism signaling when to review inventory levels and when and whether to requisition items. This study provides logistics leaders need a routinized inventory review process to help improve inventory management practices. The current process is based on managers’ experience and expert judgment, and, because of local differences, can be executed unevenly and typically infrequently.

    eISBN: 978-0-8330-8279-4
    Subjects: Technology, Management & Organizational Behavior

Table of Contents

  1. Front Matter
    (pp. i-ii)
  2. Preface
    (pp. iii-iv)
  3. Table of Contents
    (pp. v-vi)
  4. Figures
    (pp. vii-viii)
  5. Tables
    (pp. ix-x)
  6. Summary
    (pp. xi-xvi)
  7. Acknowledgments
    (pp. xvii-xviii)
  8. Abbreviations
    (pp. xix-xx)
  9. 1. Introduction
    (pp. 1-4)

    More than 90 Central Issue Facilities (CIFs), which are located at major installations around the world, issue OCIE⁵ to Active Component soldiers and deploying National Guard and Army Reserve soldiers. The value of OCIE inventory managed by the Army is increasing. For example, between January 2008 and April 2011, the value of OCIE inventory held at CIFs in the continental United States (CONUS) increased by 33 percent, from $0.8 billion to $1.1 billion, as illustrated in Figure 1.1. In the figure, the lower segments of the sandbar chart are categorized by CIF region or purpose, e.g., CONUS CIFs or Rapid...

  10. 2. A Standard, Data-Driven Approach to Help CIF Managers Make Replenishment Decisions
    (pp. 5-18)

    In this chapter, we describe the first of RAND’s twofold recommendations for improving inventory management: the adoption of a standard, data-driven approach to help CIF managers make replenishment decisions, i.e., what and how much to order.

    The current replenishment process is based on managers’ experience and expert judgment, which is not always empirically based. Local differences in experience and expertise mean that the replenishment process is executed unevenly across the CIFs. Under the current system, the CIF manager reviews inventory monthly or quarterly and determines which items need to be replaced. This relatively low frequency of review and requisitioning increases...

  11. 3. Increasing Lateral Transfers
    (pp. 19-24)

    Replenishment requisitions can be fulfilled either by wholesale requisitions with DLA or by lateral transfer of materiel from another CIF. The second of RAND’s twofold recommendation for improving inventory management is to increase lateral transfers to make better use of existing inventory at CIFs. RAND recommended and the Army subsequently adopted a standard, data-based approach to help CMO make lateral transfer decisions, i.e., how to identify inventory that can be laterally transferred to fulfill replenishment requisitions.

    The current lateral transfer decision process is manual and time-consuming:

    CMO contacts potential sending CIFs about a lateral transfer opportunity: The process can take...

  12. Appendix A: Overview of Peak Issue Methodology Algorithms
    (pp. 25-30)
  13. Appendix B: Original Issue and Turn-In History
    (pp. 31-32)
  14. Appendix C: Drop List
    (pp. 33-34)
  15. Appendix D: Substitutable/Replaced List
    (pp. 35-40)
  16. Appendix E: Proxy NSN List
    (pp. 41-44)
  17. Appendix F: Set Component List
    (pp. 45-48)
  18. Appendix G: No Turn-In List
    (pp. 49-50)
  19. Appendix H. Input Files to Inventory Levels Algorithm
    (pp. 51-56)
  20. Appendix I: CIF Inventory Levels Algorithm
    (pp. 57-60)
  21. Appendix J: Input Files to Retention Levels Algorithm
    (pp. 61-64)
  22. Appendix K: CIF Retention Levels Algorithm
    (pp. 65-68)
  23. References
    (pp. 69-70)