NORS rates are used to evaluate the effectiveness of the USAF base level supply system. This thesis critiques the use of NORS rates and other management indicators used by USAF managers in evaluating supply system performance and proposes new management indicators. USAF inventory policy is examined and the EOQ item, recoverable item, and engine inventory models are analyzed. Each model's variables, assumed demand distribution, implied performance level, and constraints are reviewed. Indicators are proposed that will provide managers with information with which to ensure actual variable values to not exceed their constraints. The proposed indicators will provide a method for evaluating and controlling base level supply system performance. Although a management indicator that directly measures the relationship between supply system performance and operational capability can not be developed, the proposed indicators will minimize back-orders. RAND has shown that my minimizing backorders, the NORS rate is also approximately minimized. Additionally, NORM should be reduced when backorders are minimized. While some computer programming changes will be required, no changes to USAF inventory policy will be necessary to use the proposed indicators. (Author).