Coupling logistics to operations to meet uncertainty and the threat (CLOUT)

Uncertainty is of essentially two kinds: statistical uncertainty (variability observed in repeatable phenomena), and state-of-the-world uncertainty (uncertainty about phenomena that are not repeatable, not observed or observable, or both). State-of-the-world uncertainty dominates the wartime scenario and affects peacetime planning as well. This report describes a set of initiatives called CLOUT (coupling logistics to operations to meet uncertainty and the threat) designed to cope with resource shortages caused by poor predictions of demand. The theater-level CLOUT initiatives include (1) lateral repair by bases that have repair capability to support bases that do not; (2) forward stockage for quick response to unsatisfied demands at bases; (3) responsive theater transportation to support lateral resupply, forward stockage, lateral and theater repair, retrograde, and distribution of assets coming into the theater; and (4) improved operating policies and decision rules in prioritizing repair assets and allocating them to bases. The "wholesale" or depot-level CLOUT initiatives include the following: (1) responsive, assured intertheater transportation; (2) enhanced flexibility, responsiveness, and relevance of the depot's repair process; and (3) distribution of serviceable assets that explicitly accounts for mission urgency and the current asset position worldwide.