Risk assessment of readiness and life cycle cost for weapon systems

Loading...
Thumbnail Image
Authors
Kang, Keebom
Doerr, Kenneth H.
Subjects
weapon systems performance
readiness
life cycle cost
risk factors
Monte Carlo simulation
Advisors
Date of Issue
2012-12-07
Date
December 7, 2012
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
Given an acceptable level of military performance, arguably the two most important criteria for weapon systems performance are readiness (operational availability, or Ao) and life cycle cost (LCC). These two criteria are in conflict: one may maximize Ao by increasing LCC or minimize LCC by degrading Ao. In this paper, we develop a model to analyze risk factors associated with this bi-criterion problem. To analyze the impact of input factors on risk, or variance in the outcome criteria, we conduct Monte Carlo simulation. We then apply design of experiments methodologies to identify risk factors by analyzing quantiles of these criteria in which we examine the probability that cost will exceed a certain threshold dollar amount and the probability that readiness falls below a certain threshold.
Type
Technical Report
Description
Acquisition Research Sponsored Report Series
Disclaimer: The views represented in this report are those of the author and do not reflect the official policy position of the Navy, the Department of Defense, or the Federal Government.
Department
Graduate School of Business and Public Policy (GSBPP)
Identifiers
NPS Report Number
NPS-CE-12-213
Sponsors
Naval Postgraduate School Acquisition Research Program
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.