A METHOD FOR ECONOMIC COMPARISON OF EXISTING AND PROPOSED AIRCRAFT

A method of comparing a force-in-being with proposed replacements has been developed. The method quantitatively measures differences in cost-effetiveness as a function of the time period in which the replacements become available. A constant effectiveness model is used as the basis for establishing inventory requirements necessary to meet the desired effectiveness goals. As replacement items become available, they replace the existing item at a rate consistent with their relative effectiveness with the objective of maintaining constant effectiveness throughout the transition period. The number of each item required each year is compiled over the time period of interest. The cost of operating the existing force; developing, procuring, and operating the replacement force; is compiled for each particular year. The present worth of money is used to discount expenditures for subsequent years Thus, a method to quantitatively account for dissimilar fund expenditure rates is available through a normalized cost estimate which reflects economic effect, risk, future budget restrictions, and other economic restrictions.

  • Corporate Authors:

    McDonnell Aircraft Corp

    ,    
  • Authors:
    • Schaefer, R K
  • Publication Date: 1966-4-18

Subject/Index Terms

Filing Info

  • Accession Number: 00073043
  • Record Type: Publication
  • Source Agency: FLIGHT TRANSPORTATION LABORATORY, MIT DEPT. OF AERONAUTICS AND ASTRONAUTICS
  • Report/Paper Numbers: None
  • Files: TRIS
  • Created Date: Sep 5 1974 12:00AM