Assessment of the Effectiveness of Production Cooperation and Logistics Chains in Meeting the Needs of the Defense Forces
Abstract
Purpose. To study and systematize the mechanisms for managing production cooperation within the State Target Program for the Development of Weapons and Military Equipment in order to develop recommendations for increasing the resilience of logistics chains and the efficiency of defense order execution under martial law.
Method. Linear programming and optimal planning theory methods were used to evaluate resource allocation; systemic-structural analysis was applied to study multi-tier cooperation; statistical analysis of defense order execution dynamics during 2021–2024; and a comparative analysis method to evaluate insourcing and outsourcing models.
Findings. The critical role of the STP WME as a tool for program-target regulation was substantiated; patterns of exponential management complexity due to increasing cooperation depth (up to 6–8 tiers) were identified; the feasibility of transitioning from rigid directive planning to horizontal network structures was proven; factors affecting chain resilience (geopolitical, logistical, technological) were systematized.
Theoretical implications. The work develops the scientific approaches of the Ukrainian school of cybernetics regarding the automation of resource management in modern security conditions; deepens the understanding of the "bullwhip effect" in the specific context of defense production; forms the conceptual foundations for project-oriented management of integrated defense structures.
Practical implications. The results allow for optimizing synchronization processes between prime contractors and subcontractors; implementing SRM-class systems for real-time supplier monitoring; and forming localization and import substitution strategies for critical components to ensure Ukraine's technological sovereignty.
Originality. For the first time, a comprehensive analysis of the transformation of Ukraine's defense logistics from a post-Soviet model to a network-centric system adapted to NATO standards was conducted, considering the role of the private sector and DefenseTech clusters as drivers of innovative development.
Research limitations. Limitations are due to the high level of secrecy regarding actual defense procurement volumes and the significant volatility of the components market (especially microelectronics), which complicates long-term forecasting.
Paper type. Research.
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References
Verkhovna Rada of Ukraine. (2020). Zakon Ukrainy «Pro oboronni zakupivli» [Law of Ukraine "On Defense Procurement"]. https://zakon.rada.gov.ua/laws/show/808-20
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President of Ukraine. (2021). Decree No. 117/2021: On the Strategy of De-occupation and Reintegration of the Temporarily Occupied Territory of the Autonomous Republic of Crimea and the City of Sevastopol. https://www.president.gov.ua/documents/1172021-37521
Savchenko, O. F., & Stepanenko, A. V. (2024). Modeliuvannia kooperatsiinykh zviazkiv pidpryiemstv oboronnoho sektoru v umovakh voiennoho stanu [Modeling of cooperation ties of defense sector enterprises under martial law]. Economics and Management, (2), 45–58.
Brave1. (2024). Annual Report of the Ukraine Defense Cluster 2023–2024. Ministry of Strategic Industries of Ukraine. https://brave1.gov.ua
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