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AN INVESTMENT MODEL FOR REPARABLE ASSETS: THE F-4 CASE,
CENTER FOR NAVAL ANALYSES ARLINGTON VA INST OF NAVAL STUDIES
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This study develops an investment model for reparable assets. These assets include items such as end products aircraft, ship, etc. and the recoverable parts which comprise these end products. The model is applicable to firms which operate a number of end products and maintain a rework facility for periodic servicing of the end products. The problem is to find the minimum-cost combination of repair resources equipment, labor, and spares and end products in order to obtain a given level of available end products. After the model has been developed, it is applied to the case of those F-4 aircraft scheduled to be reworked at the North Island Naval Air Rework Facility. It will be shown that the mix of resources supporting the existing F-4 operating level is not optimal two alternative courses of action are set forth. Author
APPROVED FOR PUBLIC RELEASE