Improving Air Force purchasing and supply management of spare parts

This research provides the Air Force with a methodology with which to evaluate various strategies for improving the procurement of spare parts and an example use of the methodology for F100 engine parts. Using exploratory analysis techniques and system dynamic modeling a structural analysis of the interaction of these changes is studied leading to a better understanding of the effectiveness of the various supplier management policies. This includes identifying those policy levers most effective in improving various measures of interest. Although this research provides a broad structure across objectives and alternatives that are often “stove-piped” between organizations, it also points out where additional research is needed to improve understanding certain relationships (e.g. the impact of contract length on quality), their functional forms and their parameters. Some parameters may require alteration for other kinds of parts in other applications. Thus, the methodology highlights achieving a broad macro understanding of purchasing management policy.; This dissertation shows that policy and organizational changes in the PSM process have the potential to improve effectiveness while maintaining or lowering costs. It has also demonstrated that a system dynamic model used with can provide an important contribution to defining, discussing, and understanding the complex interactions between policy levers and outcome measures particularly in enhancing PSM efficiency and effectiveness. The model serves as a helpful aid to facilitate discussion with all levels of personnel. By facilitating an in-depth exploratory analysis into the interaction of the PSM policy levers, insights were gained into how the PSM process interacts that were previously not well understood. Moreover, by populating the model with a specific data set, broad policy recommendations were formulated that when implemented should improve the support provided to the F100 engine at a reduced overall cost.