Impact of logistics on readiness and life cycle cost : a life cycle management approach
Yoder, E. Cory
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Operational commanders are concerned with maintaining an optimal operational availability (Ao) for their weapons systems while balancing with readiness risk (probability of not achieving a threshold Ao), and cost. Operational availability has been integrated in the acquisition process (Department of Defense, 2009), affecting decision making to a great extent. In the early phase of an acquisition, an initial Ao threshold is created to support mission requirements. The initial Ao threshold is used in performancebased contracts in order to reduce the buyers' risk and the total life cycle cost (TLCC). Utilizing logistics modeling, cost analysis, a test platform, which is the Light Armored Vehicle equipped with a 25mm Gun System (LAV-25) currently employed by the United States Marine Corps (USMC), the authors will determine the effects of logistics on Ao and the TLCC utilizing specific critical factors, such as mean time between maintenance (MTBM), mean down time (MDT), and operational tempo. The authors' research will show which of the Ao's synthetic parameters are more sensitive to maintaining specific levels of Ao and readiness risk in conjunction with the cost, and the authors will suggest alternatives to achieve Ao and readiness risk thresholds under specific cost constraints.
MBA Professional Report
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