A method for repricing aircraft procurement programs

A method for repricing aircraft procurement programs

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Article ID: iaor1988559
Country: United States
Volume: 37
Issue: 2
Start Page Number: 255
End Page Number: 265
Publication Date: Mar 1989
Journal: Operations Research
Authors: , ,
Keywords: military & defence, planning
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.

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