Potential logistics cost savings from engine commonality

Abstract

The purpose of this MBA Project is to determine potential logistics cost savings the USAF and DoD could have realized through the life of the F-16 fighter aircraft had they required engine commonality from the two engine manufacturers during the Alternate Fighter Engine (AFE) competition. Additionally, the authors seek to establish analysis framework to determine potential cost savings from commonality for other complex, high-cost systems (end items or subcomponents). The model assumes inventory consolidation is necessary to realize any savings from commonality. The Ardalan Heuristic Method is employed to determine siting for consolidation points using existing United States Air Force operational locations. This MBA Project determined the potential cost savings for engine commonality in the F-16 to be approximately $31.8M (2006 dollars).