A replacement model for equipment with a constant operating requirement : a solution to a Department of Defense allocation problem for tactical military vehicles.
Hart, Lawrence Patrick
Shipley, Jerry J.
Transue, John R.
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Equipment which must maintain some minimum level of operations poses a difficult problem in determining the economic service life. This is especially true when this equipment is subject to a deterioration of effectiveness due to age. It is the purpose of this paper to investigate this problem in its specific application to tactical military vehicles. This application poses institutional and organizational constraints which must be considered. Using an inventory approach, the model is developed for the batch procurement situation. The embedded functional relationships are identified and introduced into a cost equation which can be solved for the economic service life. This basic model is then expanded to include the situation of continuous procurement, attrition, present value comparisons, and salvage value. In the investigation an attempt is made to define the parameters by empirical analysis. However, the data were not available to support this effort. Approximations are derived in order to exercise the model in a somewhat realistic environment. These parameters were introduced into the computer program which was designed to solve the model. Sensitivity analysis was conducted to determine the model's sensitivity to a change in the parameters. This analysis shows that the present replacement policy is the economic replacement policy. However, small changes could have drastic results. The situation where the personnel varied with the age of the supported equipment was addressed. The analysis clearly indicates that this area should receive detailed investigation. The study concludes that the out-of-service time of tactical military vehicles should be carefully investigated. This can only be accomplished if out-of-service is defined as the total time the equipment is not available to perform its intended mission. Also, that the personnel situation should be thoroughly investigated to determine the effects of the age of the supported equipment on the number of personnel required. When the correct parameters are available, the model should be exercised to ascertain if the current replacement policies should be changed.
This thesis document was issued under the authority of another institution, not NPS. At the time it was written, a copy was added to the NPS Library Collection for reasons not now known. It has been included in the digital archive for its historical value to NPS. Not believed to be a CIVINS (Civilian Institutions) title.
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