Equipment is very much an integral part of the current supply system. A consequence of being out of fuel or supplies will translate into being out of vehicles and equipment, which is a bad forced relation.
That said, we never talked about two different things. The abstract supply system you talk about is still just supply capacity with negative modifiers if the region is cut off from the supply chain. The actual supplies is very much equipment, as the DD states. A division will face specific negative modifiers as well if it lacks tanks or trucks or infantry equipment.
You've got it backwards.
Supply is now, in all practical aspects, a function rather than numbers, that you don't see it and don't produce it is just abstraction, the effects of having supplies or not having them are all that matters (according to PDS). Equipment is another layer on top of supplies. When a division runs out of supplies due to being in a bad place or out of capacity (as in your carried 30 day supply, which is still not a supply-number, it's just days) you will get different issues such as ORG loss, negative modifiers and eventually increased attrition. This has nothing to do with equipment at all but emulates the things that makes a division work (food, ammo, fuel etc).
In addition to being out of supply capacity your division will ALSO get issues with equipment over time since you cannot receive more of it (thus you cannot replace that division's equipment losses no matter how much you produce). Equipment is also part of the logistics system but it's not the same as the supplies. The latter is simplified into something assumed to always be issued as long as you have capacity, once you don't have capacity the division is abstractly assumed to start eating and refueling from its 30 day carried supply before running completely dry. There are no individual numbers involved for supplies, just a "weight" of the division and on-map capacity in the network and (if demand is larger than capacity) the prioritization and eventually the clock.
I do agree that having supplies and fuel (and maybe even ammo) as equipment would be a much better way to handle it, but it's not the case right now.
PDS justified their decision in removing fuel as it's own part of the supplies by saying it's included in the production of vehicles instead. This latter part is what's hard to swallow and what the discussion was originally about.
When you wrote about adding fuel I simply commented that separating it from the supplies and adding it as an extra channel would create issues (as in the supply capacity function). Adding it as if it was equipment also brings some issues since it would then follow the equipment-mechanic and not the supply mechanic (which, as I wrote above, is a bit different and hits you sooner).
The best method would probably be to remove all supply penalties and JUST use the capacity system and then add supplies and fuel along with the equipment but to have a very high attrition cost for each of them according to division size, activity and terrain. This would however require production of supplies and fuel and thus the production system would need some tweaking.
Hopefully it's within reason to mod this if it turns out that the currently implemented system doesn't work in a credible way (but that remains to be seen).
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