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<p>Naval Supply Systems Command Global Logistics Support Ammunition (NAVSUP GLS AMMO) is considering an alteration of the current Navy ammunition stock positioning system. The purpose of this project is to analyze the cost and delivery performance risk associated with either centralizing the Navy’s ammunition stockpiles and positioning them at an inland Army depot or decentralizing the ammunition stockpiles and positioning them at coastal Navy facilities. A Monte-Carlo simulation model was developed to simulate expected cost and delivery performance risk using historical demand data and rates provided by NAVSUP GLS AMMO. These measures of risk enable NAVSUP GLS AMMO to determine the probability that the centralized or decentralized system will outperform the status quo system with regard to cost and delivery performance.
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<br>Subjects: supply chain management; Monte-Carlo simulation; risk; delivery performance; stock positioning</div>
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<dl><dd>Sharp, David</dd>
<dd>Rossmanith, Eric</dd></dl></div>
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