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The Defense Logistics Agency faces about $1 billion in inventory obsolescence cost each year due primarily to the high dynamism in demand that it faces. This report examines how to mitigate this cost by improving supply chain agility, focusing on reducing lead times, optimizing order quantities, and mitigating the effects of demand shifts through improved customer information flow and utilization.
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The Defense Logistics Agency faces about $1 billion in inventory obsolescence cost each year due primarily to the high dynamism in demand that it faces. This report examines how to mitigate this cost by improving supply chain agility, focusing on reducing lead times, optimizing order quantities, and mitigating the effects of demand shifts through improved customer information flow and utilization.