The Effect of Unreported Demand on the F/A-18's Supply Chain

Abstract

This research investigates the causes of unreported demand associated with F/A-18 aircraft components during the execution of cannibalization and the issuance of repairable parts from the Stricken Aircraft Reclamation and Disposal Program (SARDIP). The current transition to the F-35 Joint Strike Fighter across the entire Marine Corps F/A-18 Type Model Series (TMS) platform provides an opportunity to research and analyze various aspects of the divestiture process. During the divestiture period of the F/A-18 platform, missing demand signals lead to inaccuracies in demand forecasting. This inaccurate demand capture increases stress on the supply system and future funding requirements within the organization. This study analyzes five years of demand data gathered from the Navy Enterprise Resource Planning (ERP) system in order to identify causes and sources of lost demand associated with cannibalization and SARDIP issues. In addition, this study presents an analysis of current Marine Corps aviation supply policies and cannibalization actions to identify shortfalls in demand reporting. The data gathered suggest that unreported demand leads to increases in demand variability and the ability to allocate funds for F/A-18 components. Although the impacts of unreported demand for the F/A-18 will disappear once the platform is no longer in service, unreported demand will continue to affect all aircraft remaining in service.