Estimating Supply-Chain Burdens in Support of Acquisition Decisions

Abstract

Acquisition decisions drive supply-chain requirements that incur financial costs and other critical impacts. To account properly for the resource impacts of demand for fuel and other supplies for new weapon systems and platforms, the Services are required to estimate the fully burdened cost of energy in acquisition analyses, including the resources required for the logistics activities necessary to deliver supplies to the warfighter in an operational scenario. This research uses economic input/output analysis to model the Department of Defense supply chain to estimate the fully burdened cost of fuel and other supplies as a function of the locus of demand to support acquisition decisions. This year's accomplishments include (1) modeling logistics with force protection for fuel delivery to Navy assets in a threat environment and applying the results to real-world examples and (2) modeling the impact of consumption of multiple supply commodities by logistics activities themselves.