Clemson Institute of Supply Chain Optimization & Logistics - CISCOL

Lockheed Martin

Lockheed Martin
Clemson is working closely with the supply chain and information technology groups at Lockheed Martin Logistics Services in managing the replenishment of spare parts, where even slight changes to stocking policies can lead to significant reductions in program costs.

 

People involved in working closely with Lockheed Martin :

1) Dr. Kevin Taaffe

2) Ashley Kay Childers

3) Matt Miller

(from left to right - Ashley Childers, Matt Miller & Dr.Kevin Taaffe).

Some of the recent projects include :

1) Improved Forecasting Techniques for Integrated Prime Vendor (2008)

To support Lockheed Martin's desire for improved performance on the IPV program, Clemson and Lockheed are collaborating to:

1) Provide insight into improved forecasting and inventory management techniques,

2) Test several forecasting techniques via the automated forecast and inventory analysis tools developed by Lockheed Martin and Clemson under the 2007 work plan. This tool allows Lockheed Martin to benchmark changes to replenishment strategies without having to run each policy "live."

3) Incorporate additional demand information (both subjective and objective) to the historical order receipts currently being used from SAP to perform the forecasting function.

Finally, by combining both forecasting and inventory management, Lockheed Martin can use observed forecast error to aid in setting safety stock levels and refine part inventory settings as well as monthly part forecasts. The goal is to achieve improved fill rates, lower inventory costs, and a more responsive supply chain.

2) Forecasting and Inventory Analysis for Integrated Prime Vendor (2007)

To support Lockheed Martin's desire for improved performance for their supply support programs, Clemson University was tasked with three main objectives:

1) determine the extent to which forecasting and inventory management are used,

2) provide insight into improved forecasting and inventory management techniques, and

3) develop a prototype decision support system (DSS) that allowed Clemson and Lockheed to benchmark changes to replenishment strategies without having to run each policy "live."

In improving forecasting and inventory management techniques for Lockheed Martin, Clemson re-evaluated safety stock settings based on customer purchase information as well as supplier reliability data. This combination of supply and demand data has resulted in an improved safety stock management policy. Future implementation of this policy has been demonstrated (via simulation) to reduce part stock-outs and potential work stoppages, resulting in a significant savings to Lockheed.

Clemson also worked with Lockheed in preparing material forecast improvements for their supply support programs. Based on historical demand (and additional rule-based part classifications), Clemson has recommended a forecasting model to incorporate into internal monthly reports as well as documents communicated to Lockheed's suppliers.