By Committee on Assessing the Need for a Defense Stockpile, National Research Council

For the reason that 1939, the U.S. govt, utilizing the nationwide safety Stockpile (NDS), has been stockpiling severe strategic fabrics for nationwide protection. the industrial and nationwide protection environments, although, have replaced considerably from the time the NDS used to be created. present threats are extra various, construction and processing of key fabrics is extra globally dispersed, the worldwide pageant for uncooked fabrics is expanding, the U.S. army is extra depending on civilian undefined, and relies way more on just-in-time stock regulate. to assist be certain the importance of those adjustments for the strategic fabrics stockpile, the dep. of security requested the NRC to evaluate the ongoing desire for and cost of the NDS. This record starts off with the ancient context of the NDS. It then offers a dialogue of raw-materials and minerals provide, an exam of adjusting safeguard making plans and fabrics wishes, an research of contemporary instruments used to control fabrics provide chains, and an evaluation of present operational practices of the NDS.

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All rights reserved. html Annual Funding for Acquisitions and Upgrades ($ millions) Historical Context 31 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year FIGURE 2-1 Annual funding for acquisitions and upgrades. Data taken from DNSC annual materials reports. 2--1 Since 1992, changes in defense requirements and supply assumptions have greatly reduced the stockpile requirements, and most of its content has been deemed to be in excess.

Supply choke points or surge demand response issues may point to the need for holding greater inventory at various stages of the process. Holding a stockpile might be one of many tools available to a defense-materials management system, perhaps a tool of last resort. It is a tool that other governments are using but that industry uses only when absolutely necessary. When deciding which policy tools are appropriate for meeting the strategic objective for any material, if a stockpile is being considered it will be important to take into account (1) the quality of the material, how it may degrade, and if its usefulness could diminish over time; (2) how long it would take to get a material to where it is needed; and (3) the total costs of supplying, storing, and maintaining the material.

In 1959 an advisory committee of the Departments of Commerce, State, Interior, Agriculture, and Defense was established to review disposal plans. In the 1960s, defense planners calculated their risk analyses based on the ­ability to respond to two and one-half conflicts at one time—that is, war with the Soviet Union in Europe, war with the Peoples Republic of China in Asia, and a “halfwar” with another regional state, in this case Vietnam. 4 billion greater than estimated wartime needs (Snyder, 1966).

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