Modeling the Army's Modernization Strategy in Response to Fiscal Constraints: A Linear Programming Approach
[Technical Report, Master's Thesis]
Naval Postgraduate School
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In 2018, the Army Futures Command AFC was established to modernize the Army and ensure the Army and its soldiers outmatch their adversaries in future conflicts. The Armys modernization efforts include eight priorities encompassing 34 programs. The challenge Army senior leaders face is determining the overall modernization strategy that will maximize future total operational benefit when faced with budgetary constraints. The primary aim of this project was to determine the maximum total operational benefit subject to a fixed year budget constraint. First, we reviewed the DoDs budget and acquisition process. From this analysis, we formed a methodology incorporating the Planning, Programming, Budgeting, and Execution PPBE process with the defense acquisition strategy timeline. We then generated a five-year fixed budget constraint derived from the Future Years Defense Program FYDP budget projection. Finally, we implemented a linear programming model to compute the maximum operational benefit subject to our fixed budget constraint. The model results outline the impact potential budgetary constraints have on the total operational benefit. By varying the range of budget constraints from 100 percent funded to 50 percent funded, we used sensitivity analysis to determine the impact on specific programs. Our model results will assist Army senior leaders to make more informed decisions regarding the allocation of resources to fund current and future modernization programs.
- Administration and Management
- Logistics, Military Facilities and Supplies