Ideal system capacity and demand control for the Naval Telecommunications System: an economic analysis

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Authors
DeLeeuw, Jeffrey J.
Subjects
Ideal capacity
demand
pricing
chargeback
marginal cost
marginal utility
Naval Communications System
Advisors
Gates, William R.
Date of Issue
1990-03
Date
March 1990
Publisher
Monterey, California. Naval Postgraduate School
Language
en_US
Abstract
The Naval Telecommunications System (NTS) capacity to handle message traffic is frequently exceeded by high levels of user demand often resulting in a failure to meet message speed of delivery standards. In order to resolve this problem, managers of the NTS must decide to either expand system capacity, control demand, or apply some combination of these two alternatives. The purpose of this thesis is to analyze this situation and make recommendations based upon the application of economic theory. The principles leading to the definition and understanding of optimal system capacity and user demand are laid out as they apply to the NTS. Having established a theoretical rationale for defining the ideal system capacity, a number of significant practical barriers to the implementation of this approach are explored. These barriers can be characterized as deriving from the tremendous difficulties encountered in the attempt to quantify cost and demand parameters necessary for determining the actual level of optimal system capacity.
Type
Thesis
Description
Series/Report No
Department
Department of Administrative Sciences
Organization
Naval Postgraduate School (U.S.)
Identifiers
NPS Report Number
Sponsors
Funder
Format
ix, 68 p.
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.
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