IDEAS home Printed from https://ideas.repec.org/a/wly/navres/v35y1988i4p619-632.html
   My bibliography  Save this article

A decision support system for the procurement of military equipment

Author

Listed:
  • Evan E. Anderson
  • Yu‐Min Chen

Abstract

The use of life‐cycle costs in procurement is limited by the accuracy of cost estimates and assessments of availability risks under the conditions generating costs. Critical to these problems are the needs and responses of equipment to maintenance and repair. Using transition probabilities to define the relationships between serviceability and maintenance and repairs, this article develops a comprehensive decision support system for military procurement. It uses a dynamic programming model to determine the least‐cost set of maintenance and repair decisions, where adjustments are included for warranty conditions, time value of money, the opportunity costs of equipment failure, and the end‐of‐cycle salvage values or disposal costs. The system allows users to define working and failed states, create their own rules or indicators of availability from estimates of state probabilities and establish thresholds of risk acceptability.

Suggested Citation

  • Evan E. Anderson & Yu‐Min Chen, 1988. "A decision support system for the procurement of military equipment," Naval Research Logistics (NRL), John Wiley & Sons, vol. 35(4), pages 619-632, August.
    • Handle: RePEc:wly:navres:v:35:y:1988:i:4:p:619-632
    DOI: 10.1002/1520-6750(198808)35:43.0.CO;2-L
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/1520-6750(198808)35:43.0.CO;2-L
    Download Restriction: no
    File URL: https://libkey.io/10.1002/1520-6750(198808)35:43.0.CO;2-L?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sherif, Yosef S & Kolarik, William J, 1981. "Life cycle costing: Concept and practice," Omega, Elsevier, vol. 9(3), pages 287-296.
    2. Wallace R. Blischke & Ernest M. Scheuer, 1975. "Calculation of the cost of warranty policies as a function of estimated life distributions," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 22(4), pages 681-696, December.
    3. Courville, Leon & Hausman, Warren H, 1979. "Warranty Scope and Reliability under Imperfect Information and Alternative Market Structures," The Journal of Business, University of Chicago Press, vol. 52(3), pages 361-378, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rempel, M. & Cai, J., 2021. "A review of approximate dynamic programming applications within military operations research," Operations Research Perspectives, Elsevier, vol. 8(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Izzet Sahin & Hakan Polatoglu, 1995. "Distributions of manufacturer's and user's replacement costs under warranty," Naval Research Logistics (NRL), John Wiley & Sons, vol. 42(8), pages 1233-1250, December.
    2. Junhong Chu & Pradeep K. Chintagunta, 2009. "Quantifying the Economic Value of Warranties in the U.S. Server Market," Marketing Science, INFORMS, vol. 28(1), pages 99-121, 01-02.
    3. Centner, Terence J. & Wetzstein, Michael E., 1994. "Automobile And Tractor Lemon Laws," 1994 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses Risk, Technical Committee Meeting, March 24-26, 1994, Gulf Shores State Park, Alabama 271679, Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk.
    4. Mitra, Amitava, 2021. "Warranty parameters for extended two-dimensional warranties incorporating consumer preferences," European Journal of Operational Research, Elsevier, vol. 291(2), pages 525-535.
    5. Vlachos, Ilias & Bogdanovic, Aleksandra, 2013. "Lean thinking in the European hotel industry," Tourism Management, Elsevier, vol. 36(C), pages 354-363.
    6. Zahir Barahmand & Marianne S. Eikeland, 2022. "Techno-Economic and Life Cycle Cost Analysis through the Lens of Uncertainty: A Scoping Review," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    7. Heiman, Amir & McWilliams, Bruce & Zilberman, David, 2001. "Demonstrations and money-back guarantees: market mechanisms to reduce uncertainty," Journal of Business Research, Elsevier, vol. 54(1), pages 71-84, October.
    8. Nicholas Zaino & Toby Berke, 1994. "Some renewal theory results with application to fleet warranties," Naval Research Logistics (NRL), John Wiley & Sons, vol. 41(4), pages 465-482, June.
    9. Anna Maria Ferrari & Lucrezia Volpi & Martina Pini & Cristina Siligardi & Fernando Enrique García-Muiña & Davide Settembre-Blundo, 2019. "Building a Sustainability Benchmarking Framework of Ceramic Tiles Based on Life Cycle Sustainability Assessment (LCSA)," Resources, MDPI, vol. 8(1), pages 1-30, January.
    10. Thomas J. Holmes, 1984. "Monopoly Bundling of Warranty and Quality When Quality is Unobservable," Discussion Papers 612, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    11. DeCroix, Gregory A., 1999. "Optimal warranties, reliabilities and prices for durable goods in an oligopoly," European Journal of Operational Research, Elsevier, vol. 112(3), pages 554-569, February.
    12. Haritha Saranga & U. Kumar, 2006. "“Optimization of aircraft maintenance/support infrastructure using genetic algorithms—level of repair analysis”," Annals of Operations Research, Springer, vol. 143(1), pages 91-106, March.
    13. Dong-Jun Yeom & Eun-Ji Na & Mi-Young Lee & Yoo-Jun Kim & Young Suk Kim & Chung-Suk Cho, 2017. "Performance Evaluation and Life Cycle Cost Analysis Model of a Gondola-Type Exterior Wall Painting Robot," Sustainability, MDPI, vol. 9(10), pages 1-18, October.
    14. Vivek Arulnathan & Mohammad Davoud Heidari & Maurice Doyon & Eric P. H. Li & Nathan Pelletier, 2022. "Economic Indicators for Life Cycle Sustainability Assessment: Going beyond Life Cycle Costing," Sustainability, MDPI, vol. 15(1), pages 1-27, December.
    15. Rachel R. Chen & Eitan Gerstner & Yinghui (Catherine) Yang, 2012. "Customer Bill of Rights Under No-Fault Service Failure: Confinement and Compensation," Marketing Science, INFORMS, vol. 31(1), pages 157-171, January.
    16. Saccani, Nicola & Perona, Marco & Bacchetti, Andrea, 2017. "The total cost of ownership of durable consumer goods: A conceptual model and an empirical application," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 1-13.
    17. Nitin Bakshi & Sang-Hyun Kim & Nicos Savva, 2015. "Signaling New Product Reliability with After-Sales Service Contracts," Management Science, INFORMS, vol. 61(8), pages 1812-1829, August.
    18. Settanni, Ettore & Newnes, Linda B. & Thenent, Nils E. & Parry, Glenn & Goh, Yee Mey, 2014. "A through-life costing methodology for use in product–service-systems," International Journal of Production Economics, Elsevier, vol. 153(C), pages 161-177.
    19. G. G. Hegde & Uday S. Karmarkar, 1993. "Engineering costs and customer costs in designing product support," Naval Research Logistics (NRL), John Wiley & Sons, vol. 40(3), pages 415-423, April.
    20. Matthews, Steven & Moore, John, 1987. "Monopoly Provision of Quality and Warranties: An Exploration in the Theory of Multidimensional Screening," Econometrica, Econometric Society, vol. 55(2), pages 441-467, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:navres:v:35:y:1988:i:4:p:619-632. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1520-6750 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.