Originally Posted by tucumseh
Prior to 13.1.88 MoD had a max/min stock level system.
Except in the Navy where Max/Min provisioning was only used for certain "simple" store ranges. Most provisioning was via a statistical system that used (and still does) quite a clever stock algorithm. The key element in that system is the Safety Stock. There was always pressure to reduce the Safety Stock from people who thought it was ring-fenced stock sat on a shelf/pallet/rack/you name it. It was/is just a variable value inside the algorithm. It could be reduced by tinkering with the provisioning parameters but the cash saving was a one off event and usually needed "buys" to be closer together. That little but often buying often does work economically but the Enabling Arrangement with the Contractor to achieve it didn't/doesn't guarantee a worthwhile overall purchase quantity. The unit price of the store usually increased/increases accordingly.
Then came the Consultants: KPMG. They conjoured up a series of "levers" that any simpleton could pull to make desirable things happen inside the Support Chain. The Consultant's findings and recommendations cost a lot of money to produce and there was no way anyone was to be allowed to argue with them. You don't always actually get what you pay for.