AN INDEX FOR USE IN THE SELECTION OF COST EFFECTIVE SYSTEMS

Abstract

Life-cycle cost alone is not sufficiently inclusive to be used as a yardstick for the selection of a cost effective system. Equal life-cycle cost does not imply equal cost effectiveness. An index is developed which in addition to life-cycle cost, includes cost effective life span, expenditure chronology, system phase-in structure, and the present equivalent cost of money expended at a future date. Although the index does not determine military effectiveness, it does permit the cost comparison of various systems or programs on a logically compatible and equivalent basis.

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Document Details

Document Type
Technical Report
Publication Date
Oct 01, 1968
Accession Number
AD0678514

Entities

People

  • Walter G. Hartung

Tags

Communities of Interest

  • Materials and Manufacturing Processes
  • Weapons Technologies

DTIC Thesaurus Topics

  • Abstracts
  • Air Force
  • Classification
  • Comptrollers
  • Contracts
  • Cost Analysis
  • Cost Effectiveness
  • Cost Estimates
  • Department Of Defense
  • Government (Foreign)
  • Government Procurement
  • Governments
  • Life Cycle Costs
  • Life Cycles
  • Money
  • Procurement
  • Security

Readers

  • Life Cycle Cost Analysis
  • Systems Analysis and Design