Planning capital investments in Navy Forces
Field, Richard J.
Dell, Robert F.
Brown, Gerald G.
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Naval spending has always involved large amounts of resources, research and technology, money, and the attention of civilian and military leadership. In 1794 the Congress authorized $800,000 (1794 dollars) to construct six frigates. Today, an attack submarine costs more than $2 billion, an aircraft carrier more than $5 billion, and its air wing $5 billion more. These ships are the only current American clients for nuclear power plants. The Navy must balance these large capital expenditures with other procurements and maintain an industrial base capable of producing these unique warships. The Navy currently manages these complex interplays via the integrated Warfare Architecture Assessment Planning Process (IWARS). Force Structure, an IWARS component, views a 25-year horizon at the platform level using the Extended Planning Annex/Total Obligated Authority Model (a spreadsheet that estimates the financial impact of any complete future plan). This thesis presents an integer-linear program, the Capital Investment Planning Aid (CIPA), that extends EPA/TOA with optimization. CIPA explores all alternatives while considering budget restrictions, industrial base requirements and restrictions, and force level requirements. CIPA is tested with a 25-year planning horizon with eight mission areas, 19 ship classes, five aircraft types, five production facilities, and three categories of money. A current base case and several excursions demonstrate CIPA can be used to address exigent issues optimally.
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