Supply Chain Planning with Incremental Development, Modular Design, and Evolutionary Updates

Abstract

The policy specified by DoDI 5000.02 (DoD, 2008, December 8) prescribes an evolutionary acquisition strategy. Products with long lifecycles such as torpedoes, evolutionary updates via incremental development, modular design updates, technology refreshes, technology insertions, and Advanced Processor Builds are all in play at the same time. Various functional elements of the weapon system are often redesigned during the lifecycle to meet evolving requirements. Component obsolescence and failures must also be anticipated and addressed in upgrade planning. Within each weapon system's evolutionary acquisition, cycle-changing requirements may expose weaknesses that have to be rectified across the inventory. New acquisition paradigms such as modular design have to be introduced into the supply chain while maintaining inventory levels of previously designed weapons at a high level of readiness. Thus, a diverse set of requirements must be satisfied with a finite set of resources. The acquisition policy does not provide guidance on how to address cross-coordination and optimization of project resources. This paper explores decision models for balancing conflicting demands and discusses the application of how these models address cross-coordination and optimization of project resources in the torpedo acquisition process while keeping the weapon's efficiency and inventory effectiveness at or above minimum specified levels.