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Optimizing Logistics Support for Ballistic Missile Defense Ships in Sixth Fleet

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Optimizing Logistics Support for Ballistic Missile Defense Ships in Sixth Fleet Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2013-12 Optimizing logistics support for Ballistic Missile Defense ships in sixth fleet Alarcon, Julio A. Monterey, California: Naval Postgraduate School http://hdl.handle.net/10945/38881 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT OPTIMIZING LOGISTICS SUPPORT FOR BALLISTIC MISSILE DEFENSE SHIPS IN SIXTH FLEET By: Julio A. Alarcon and Timothy J. Boston December 2013 Advisors: Aruna Apte Walter DeGrange Approved for public release; distribution is unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED December 2013 MBA Professional Report 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS OPTIMIZING LOGISTICS SUPPORT FOR BALLISTIC MISSILE DEFENSE SHIPS IN SIXTH FLEET 6. AUTHOR(S) Julio A. Alarcon and Timothy J. Boston 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943-5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. IRB Protocol number ____N/A____. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution is unlimited 13. ABSTRACT (maximum 200 words) This research analyzes the optimal and most cost-efficient stationing of critical ship parts that will directly support Ballistic Missile Defense (BMD) ships deployed and stationed in Europe. The goal is to inform and recommend to decision-makers where and how many critical parts should be staged to best support the operational readiness of BMD ships on European Phased Adaptive Approach (EPAA) missions. To effectively accomplish this task, the research analyzes eight high-demand, high-dollar value spares that are forward-staged in Sigonella, Italy. Through modeling and simulation, we determine the most effective method to optimize ship readiness in a cost-constrained environment. 14. SUBJECT TERMS AEGIS, Ballistic Missile Defense, Sixth Fleet, Optimization, Modeling 15. NUMBER OF PAGES 63 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89) Prescribed by ANSI Std. 239-18 i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release; distribution is unlimited OPTIMIZING LOGISTICS SUPPORT FOR BALLISTIC MISSILE DEFENSE SHIPS IN SIXTH FLEET Julio A. Alarcon, Lieutenant, United States Navy Timothy J. Boston, Lieutenant, United States Navy Submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION from the NAVAL POSTGRADUATE SCHOOL December 2013 Authors: Julio A. Alarcon Timothy J. Boston Approved by: CDR Walter DeGrange Dr. Aruna Apte Dr. William R. Gates, Dean Graduate School of Business and Public Policy iii THIS PAGE INTENTIONALLY LEFT BLANK iv OPTIMIZING LOGISTICS SUPPORT FOR BALLISTIC MISSILE DEFENSE SHIPS IN SIXTH FLEET ABSTRACT This research analyzes the optimal and most cost-efficient stationing of critical ship parts that will directly support Ballistic Missile Defense (BMD) ships deployed and stationed in Europe. The goal is to inform and recommend to decision-makers where and how many critical parts should be staged to best support the operational readiness of BMD ships on European Phased Adaptive Approach missions. To effectively accomplish this task, the research analyzes eight high-demand, high-dollar value spares that are forward- staged in Sigonella, Italy. Through modeling and simulation, we determine the most effective method to optimize ship readiness in a cost-constrained environment. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS I. PURPOSE .....................................................................................................................1 A. PROBLEM .......................................................................................................1 B. ORGANIZATION ...........................................................................................2 II. BACKGROUND ..........................................................................................................5 A. MISSION OVERVIEW...................................................................................5 B. IRANIAN THREAT ........................................................................................6 C. NAVY’S ROLE IN BALLISTIC MISSILE DEFENSE ...............................7 1. AEGIS Weapon System Overview .....................................................7 2. Arleigh Burke Flight I and II Destroyers ...........................................8 3. Overview of BMD Casualty Reporting Procedures ..........................9 D. EUROPEAN PHASED ADAPTIVE APPROACH ......................................9 1. Forward-Deployed BMD AEGIS Assets in Rota, Spain ................10 2. Key EPAA Stakeholders....................................................................10 3. Naval Support Facilities in Sixth Fleet ............................................11 III. PREVIOUS AND PROPOSED SOLUTIONS ........................................................15 A. SEVENTH FLEET ........................................................................................15 B. FIFTH FLEET ...............................................................................................16 C. TRIDENT SUBMARINES ............................................................................16 D. SIXTH FLEET ...............................................................................................18 1. Combined Task Force 63 Roles and Responsibilities .....................18 2. Logistics Overview .............................................................................19 3. BMD Casualty Reporting Procedures .............................................20 4. BMD Pack-Up Kits ............................................................................21 5. Sixth Fleet Forward-Positioned BMD Parts ....................................21 E. LONG-TERM BMD AEGIS COST CONSTRAINTS ...............................24 F. SCOPE ............................................................................................................24 IV. OPTIMIZATION MODEL ......................................................................................25 A. DATA SOURCES ..........................................................................................25 1. Sixth Fleet CASREP Data .................................................................25 2. COMAIR Data ...................................................................................26 3. MILAIR Data .....................................................................................26 4. Proximity Data ...................................................................................26 B. LOGISTICS FACTORS ...............................................................................26 1. Access and Availability of Military Sealift Command (MSC) Assets ...................................................................................................26 2. Access and Availability of Military Aircraft (MILAIR) ................27 3. Access and Availability of Commercial Aircraft ............................27 4. Proximity to Operating Area ............................................................27 5. Transferability of Parts .....................................................................28 6. Demand ...............................................................................................28 C. METHODOLOGY ........................................................................................28 vii D. MODEL FORMULATION...........................................................................29 E. FORMULATION ...........................................................................................30 F. ASSUMPTIONS .............................................................................................31 V. RESULTS, RECOMMENDATIONS, AND CONCLUSIONS .............................33 1. Variations on CASREP Lead Time ..................................................37 2. Variations on Transferability ...........................................................38 LIST OF REFERENCES ......................................................................................................43 INITIAL DISTRIBUTION LIST .........................................................................................45
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