Strategic Implications of the Experience Curve Effect for Avionics Acquisitions by the Department of Defense
PURDUE UNIV LAFAYETTE IN
Pagination or Media Count:
The Department of Defense DoD has supported numerous studies of learning curve theory, mainly in the context of the aircraft and airframe industries. However, no research has yet been documented with respect to experience curve theory as distinguished from learning curve theory for either buyers or sellers in the relatively specialized environment of the military market place. This dissertation describes investigations into the applicability and strategic implications of the experience curve effect for avionics purchases. While experience curve theory seeks to explain product cost-quantity and price-quantity relationships in terms similar to those of learning curve theory, it also recognizes the influences of such managerially controllable factors as investment, specialization, and scale. The most significant finding of this study confirmed the applicability of experience curve theory in the military market place in spite of the unique characteristics of that market i. e., cumulative average unit price parallels cumulative average total manufacturing cost.
- Administration and Management
- Economics and Cost Analysis