Date of Award

9-1991

Document Type

Thesis

Degree Name

Master of Science

First Advisor

Richard I. Moore, PhD

Abstract

This study investigated the effects of mandated depot capacity utilization rates on throughput, inventory, and operating expense. The measures of merit analyzed were work in process inventories, leadtime, and throughput. Since the services do not use a common computer system to track/compute capacity data, a computer simulation provided the data used to meet the research objectives. The simulation modeled a serially interdependent system subject to statistical fluctuations. Variability in the system was reduced by reducing the spread around the processing time mean. Buffer inventories were placed in front of each process to protect the process from variability. Constrained systems were buffered and the results analyzed. It was concluded that utilization rates do not reflect process effectiveness nor do they provide information on the level of customer satisfaction achieved. Additionally, this study resulted in the recommendation that DOD policy address effectiveness, not utilization and that performance measures based on throughput, inventory, and operating expense be used to evaluate process effectiveness.

AFIT Designator

AFIT-GLM-LSM-91S-14

DTIC Accession Number

ADA246875

Comments

The author's Vita page is omitted.

Presented to the Faculty of the School of Systems and Logistics of the Air Force Institute of Technology, Air University, in Partial Fulfillment of the Requirements for the Degree of Master of Science

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