Resource allocation for the United States Navy attack carrier striking force in the 1968-1980 period.

Abstract

The problem of efficient allocation of scarce resources occurs in industry and in military planning. Replacement schedules for existing production equipment can be analyzed for both organizations using the same techniques. Replacement of the remaining World War II - built HANCOCK-class aircraft carriers is scheduled for the mid-19 70 period. The hypothesis is tested that replacement can be made earlier than scheduled with no increase in cost. Two alternative replacement schedules are set forth, using conventional-power carriers in one and nuclear-power carriers in the other. Methods of conducting a cost-effectiveness analysis of this type are discussed in some detail. The method of setting the alternatives equal in cost and measuring the resulting effectiveness is selected. Marginal effectiveness and its analysis are discussed. The techniques for estimating system cost and adjustment of force levels to set them equal are illustrated with unclassified examples. Hypothetical scenarios postulated in order to allow force effectiveness to be measured are then described and illustrated.