Sub-Optizaizing Logistics

This paper focuses on methods for enhancing the current Army logistics system. It begins with a definition of "optimization" and then identifies current limitations within the logistics system. Four impacts of these limitations are discussed in detail as follows: excess at the wholesale level, excess at the retail level, financial management, and pricing/credit policy. Four current initiatives to rectify these limitations are also presented. These initiatives are the Single Stock Fund, Global Combat Support System-Army, the Army Strategic Logistics Plan, and the Advanced Logistics Program. Two private sector supply/information systems used by Caterpillar and Wal-Mart are briefly examined. The paper concludes with a summary describing the current state of optimization and identifies four recommendations. These recommendations focus on providing more centralized control for the Deputy Chief of Staff for Logistics, immediately implementing the Single Stock Fund concept, closing the FORSCOM Materiel Management Center and implementing certain RAND study recommendations.