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Assessing the Performance and Cost of Logistics Airfleet Options

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Master's thesis

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The Chief of Naval Operations OPNAV has directed a study to determine the proper airfleet to satisfy the Navys future logistics needs. The sponsor of the study is OPNAV N78i, the Financial Management Office of OPNAVs Air Warfare Division. The goal of the study is to ensure effective and efficient resource allocation in building an airfleet that will satisfy future peacetime and wartime airlift demand. This thesis supports the OPNAV study by providing a tool for evaluating airlift fleet options on the bases of cost and capability. This decision support tool combines an aircraft assignment model, which determines fleet capability. with a Life Cycle Cost LCC model, which calculates the cost of acquiring and operating a given fleet of aircraft. The combined models allow decision makers to specify a fleet mix with desirable performance characteristics, calculate the cost of that fleet, and observe the financial and operational effects of changing either the makeup of the fleet or the acquisition schedule. The thesis combines deterministic and stochastic analysis of historical demand data to assess the demand for aircraft and the capabilities of a chosen fleet mix. The data provided by the sponsor do not include overseas missions this limits the scope of the study, but does not detract from the methodology. Cost data from Navy and commercial sources are used to develop LCC data for the chosen fleet. The resulting methodology, taken as a whole, provides detailed insight into the effects that fleet mix changes have on airfleet performance and cost. The user can incorporate various priorities low cost. high capacity, high flexibility in the selection of a fleet mix and observe the impacts these decisions will have on fleet cost and performance.

Subject Categories:

  • Economics and Cost Analysis
  • Logistics, Military Facilities and Supplies

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