Shipping the raw material from mine to refinery to manufacturer has its own
Carbon Cost
cost
data
risk
Answers
Since 1939, the U.S. government, using the National Defense Stockpile (NDS), has been stockpiling critical strategic materials for national defense. The economic and national security environments, however, have changed significantly from the time the NDS was created. Current threats are more varied, production and processing of key materials is more globally dispersed, the global competition for raw materials is increasing, the U.S. military is more dependent on civilian industry, and industry depends far more on just-in-time inventory control. To help determine the significance of these changes for the strategic materials stockpile, the Department of Defense asked the NRC to assess the continuing need for and value of the NDS. This report begins with the historical context of the NDS. It then presents a discussion of raw-materials and minerals supply, an examination of changing defense planning and materials needs, an analysis of modern tools used to manage materials supply chains, and an assessment of current operational practices of the NDS.
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Answer: The answer is cost and risk.
Shipping the raw material from mine to refinery to manufacturer has its own costs and risks.
Explanation:
- Since 1939, with the support of the National Defense Stockpile, the U.S. government has been storing important strategic resources (NDS).
- However, since the NDS was founded, the economic and national security landscapes have undergone significant transformations.
- Due to the increased complexity of current threats and the globalization of the production and processing of key components, the United States military is becoming more dependent on the civilian sector, and businesses rely largely on just-in-time inventory management.
- To determine the impact of these shifts on the strategic materials stockpile, the Defense Department requested an NRC study of the NDS's continued usefulness.
- The paper begins by providing historical context for the NDS.
- The study then provides an analysis of existing NDS practices, a discussion of the availability of raw materials and minerals, an examination of how military planning and material requirements are growing, a review of the most advanced systems for managing such supply chains, etc.
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