Ideal system capacity and demand control for the Naval Telecommunications System: an economic analysis
DeLeeuw, Jeffrey J.
Gates, William R.
Boger, Dan C.
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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.
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