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The Federal Government contractors need to adhere to DFARS regulations in order to maintain Material Management and Accounting System (MMAS) standards. Most companies in the Aerospace and Defense (A&D) project based manufacturing industry tend to utilize the Hard-Pegged planning approach where material is planned, purchased and manufactured to specific projects and with very strict borrow-payback inventory movement between the projects. This approach hinders lean manufacturing principles, increases inventory costs significantly and leads to an increased number of transactions. The common inventory approach on the other hand helps fulfill the lean manufacturing promise. Since Hard-pegging is required to a certain extent, a mixed planning approach using common inventory and hard-pegging can be used to satisfy the MMAS requirement as well as to help companies reduce their inventory levels. This presentation outlines the high level solution using the mixed planning approach.