A Method for Repricing Aircraft Procurement Programs

Stephen J. Balut, Thomas R. Gulledge and Norman Womer
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Stephen J. Balut: Institute for Defense Analyses, Alexandria, Virginia
Thomas R. Gulledge: George Mason University, Fairfax, Virginia

Operations Research, 1989, vol. 37, issue 2, 255-265

Abstract: Planned annual procurement quantities for defense weapon systems are often altered after production starts. Department of Defense analysts support the decision process by providing cost estimates for alternatives to ongoing procurement programs. This paper presents a method for repricing aircraft programs under a proposed change in quantity. The method is an extension of the standard learning curve model that accommodates the redistribution of fixed costs at the contractor's plant.

Keywords: cost analysis: estimating costs of defense systems; military; defense systems: military aircraft procurement; planning; government: DoD planning and budgeting (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:37:y:1989:i:2:p:255-265

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