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Estimating the Benefits of the Air Force Purchasing and Supply Chain Management Initiative
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One of the tools the Air Force is using to improve its logistical support to the warfighter is purchasing and supply-chain management (PSCM). But other factors likely were changing at about the same time, which might influence the relationship of the PSCM initiative to the supply chain's ability to support the warfighter. To evaluate whether PSCM is doing what it is intended to do, and how well, it is necessary to control for these other factors that may be influencing its outcomes. The authors have taken a step in that direction by developing an econometric model that isolates certain identifiable factors and holds them constant as a means of separating their effects from PSCM. They illustrate their model by analyzing the relationship between PSCM and Mission Capable (MICAP) incidents. The authors considered several different factors but found data availability and quality to be a challenge. However, the model may be useful both with other factors and for estimating the benefits of other initiatives.
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