LOGISTICS MODELING AND SIMULATION

Capabilities

Sound recommendations require sound analysis. LMI is renowned for its logistics modeling and simulation capability. We use process models, such as the Supply Chain Operations Reference (SCOR) model, to characterize and analyze our clients’ business operations. We use analytical models (those based on mathematical equations) to quantitatively optimize key management decisions, such as the setting of inventory levels. We use computer simulations to explore complex relationships not amenable to mathematical description. Together, these techniques lend unsurpassed credibility to our work.

We have developed or applied models and simulations in the following:

• Inventory performance and budget requirements
• Weapon system and equipment sustainability
• Supply chain performance and improvement
• Strategic lift and force projection, and wartime casualty estimation.

CLIENTS AND SOLUTIONS

DoD—the AAM and ASM® Are Keys to Readiness-Based Sparing
Components (such as brake assemblies, avionics units, and engine-fuel controls) are so expensive—some more than $1 million apiece—that they warrant repair rather than disposal. Readiness-based sparing (RBS) is a set of management techniques, developed over many years, that allows the military services to maintain the smallest possible inventory required to support the aircraft while explicitly accounting for planned operating tempo and scenarios. LMI was one of the earliest contributors to the development of RBS and remains a leader today.

LMI developed the Aircraft Availability Model (AAM) to relate funding for the procurement and repair of spares to the resulting readiness of an aircraft fleet (the percentage expected to be ready to fly and perform a required mission). The Air Force has adopted the AAM to guide the computation of its multibillion-dollar spares program.

DoD, our allies, and the commercial aviation sector also use LMI's Aircraft Sustainability Model® (ASM®), a more dynamic and adaptable descendant of the AAM that is available commercially.  The ASM sparing model is a flexible and adaptive modeling environment that allows extensive variation in the user-defined system and logistical scenario.  For complex, high-value, and mission-critical systems, the ASM sparing model is the perfect complement to today's more generalized service parts management (SPM) packages.

DLA—FINISIM Helps Set Inventory Levels for Sporadically Demanded Items

Approximately one-half of the stocks managed by the Defense Logistics Agency (DLA) experience only sporadic demand and are not suitable for statistical demand forecasting. Using LMI’s Financial and Inventory Simulation (FINISIM) model, we have developed, tested, and applied an improved heuristic method to recommend inventory levels for these hard-to-manage items. Known as the “peak policy,” our model uses an empirical distribution of demand for each item and protects against surges in demand. The FINISIM model effectively balances inventory investment, order fulfillment performance, and procurement workload.

NASA—Logistics Assessment Capability Supports the Space Shuttle

For the National Aeronautics and Space Administration, LMI devised tools and methods to improve space shuttle logistics. We developed evaluation processes and supporting models to assess how well existing inventory and maintenance operations would support planned shuttle launch schedules and objectives. One model considers the item characteristics of the spacecraft components, availability of spare components, and time dynamics of the launch schedules and computes the number of shuttles unavailable for scheduled launches. It can also optimize procurement strategies for spare components, enabling NASA to predict when spares inventories may be insufficient and take timely action to fill the inventory.

Aircraft Sustainability Model and ASM are registered trademarks of the Logistics Management Institute.