Date of Award

3-22-2018

Document Type

Thesis

Degree Name

Master of Science in Logistics and Supply Chain Management

Department

Department of Operational Sciences

First Advisor

William A. Cunningham, PhD.

Abstract

Since the first C-130J delivery in 1999, Lockheed Martin has managed the USAF’s C-130J “peculiar” parts inventory at Keesler AFB. Now with 193 aircraft assigned to 17 operating locations across the globe, effective supply chain management and recognized cost savings are essential components to mission success and fleet longevity. Previous research within the area of location analysis has shown that minimizing the average weighted distance of shipping products can assist in cost reduction efforts. Due to this, the goal of this study is to determine if alternative CONUS C-130J locations can be utilized as the Inventory Control Point to help reduce total transportation costs for the fleet’s “peculiar” spares inventory. Using the 2017 FedEx Service Guide in conjunction with five years of historical shipping data, five alternative C-130J bases were evaluated in order to identify which of the locations could offer transportation cost savings. Additionally, inventory/personnel relocation and new infrastructure costs were collected to project pay-off periods for capital investment. Based on this analysis, Little Rock AFB is the only C-130J CONUS operating location which would reduce the total transportation costs. In conclusion, this research can drive cost effective warehousing prior to staging aircraft and establishing the full supply chain structure.

AFIT Designator

AFIT-ENS-MS-18-M-114

DTIC Accession Number

AD1056318

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