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| Author: | Balut, S. J. Gulledge, T. R. Womer, N. K. |
| Title: | A method for repricing aircraft procurement programs. |
| Journal: | Operations Research
1989 : MAR-APR, VOL. 37:2, p. 255-265 |
| Index terms: | GOVERNMENT CONTRACTING PURCHASING AIR FORCE AIRCRAFT INDUSTRY |
| Language: | eng |
| Abstract: | Planned annual weapon system acquisition program is reconsidered several times each year after production starts. When changes to future acquisition plans are considered, cost estimates by defense analysts are required for each alternative annual procurement quantity to support the decision process. The presented model for reprising aircraft procurement programs under a proposed change in quantity is mathematically simple and easy to interpret. The methodology extends traditional standard learning curve methods in that only those costs that vary with quantity are estimated using a cost progress curve while, at the same time, fixed costs are explicitly identified and allocated in the manner used by cost accountants. |
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