Planning Army Recapitalization Investment Strategies
Final rept. Dec 2001-Jun 2002
CENTER FOR ARMY ANALYSIS FORT BELVOIR VA
Pagination or Media Count:
The Armys overall recapitalization requirement of 59 B as determined by the half-life metric far exceeds the 35 B currently programmed over the next 10 years. The Defense Planning Guidance DPG 2003-07 directs the Services to make a more detailed assessment of recapitalization needs and to report optimum recapitalization rates. Planning Army Recapitalization Investment Strategies PARIS is what the Center for Army Analysis CAA used to determine these rates. A basic question with aging equipment is at what point is it cost-effective to recapitalize rather than pay increased operations and maintenance costs. Based on a fleet management model developed for this project, PARIS develops a strategy that minimizes fleet ownership costs of a set of Army fleets using a mixed integer program. The PARIS approach provides the Army with a more robust way of determining recapitalization quantities than using the less defensible half-life approach. The result is a more efficient and analytically defendable use of programmed dollars.
- Logistics, Military Facilities and Supplies