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A Method for Repricing Aircraft Procurement Programs

Author

Listed:
  • Stephen J. Balut

    (Institute for Defense Analyses, Alexandria, Virginia)

  • Thomas R. Gulledge

    (George Mason University, Fairfax, Virginia)

  • Norman Keith Womer

    (University of Mississippi, University, Mississippi)

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.

Suggested Citation

  • Stephen J. Balut & Thomas R. Gulledge & Norman Keith Womer, 1989. "A Method for Repricing Aircraft Procurement Programs," Operations Research, INFORMS, vol. 37(2), pages 255-265, April.
    • Handle: RePEc:inm:oropre:v:37:y:1989:i:2:p:255-265
    DOI: 10.1287/opre.37.2.255
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