Analysis of military systems using an interactive life cycle costing model

This paper describes a methodology for obtaining a cost model of the form: C_A=C_A(A) where C_A is the Life Cycle Cost of a proposed weapons system (i.e. the present value of the future expected cost of the system over ifs life expectancy), and A is the total units purchased of the proposed system. The final functional form is likely to be either a linear function of the total units purchased or a 2nd degree polynomial. The purpose of the Life Cycle Cost Model is to enable the analyst to obtain such a functional form at a very early stage in the development of the proposed system. This can aid an analyst to perform a trade off study of several alternate systems at a very early stage in the procurement process