A study on the key factors of suitability for performance-based logistics using a multi-criteria decision-making method

Abstract

In response to worldwide changes in logistics, the Korean Ministry of Defense has introduced performance-based logistics (PBL) to improve cost-effectiveness and availability in sustaining their weapon system. Thus, the procurement of reduced parts and the maintenance period improve the availability of equipment, and the reduction of the inventory level lowers overall logistics costs. Based on these achievements, the Ministry of National Defense is pursuing a policy to expand the PBL project. However, the criteria for selecting equipment subject to the application are ambiguous. Therefore, it is difficult to expand to all areas. Consequently, this paper aims to present the criteria for selecting future PBL projects by providing objective judgment factors and quantifying the suitable equipment for the application of PBL. For this, a delphi-analytic approach was used to derive the key factors for performance-based logistics experts, and the survey was carried out twice. A total of eight key factors were derived from the survey analysis. Subsequently, a third survey was conducted to determine the level of assessment for each key factor and to prioritize each card according to this conjoint method to determine the utility of each factor according to its level. Through this, a performance-based suitability model that combines the weighting of key factors with the level of each factor was presented.
This study is meaningful in that it selected key factors for determining the suitability of performance-based military applications based on objective data. Further, their reference values can be comprehensively determined by calculating the utility of each factor level.