Incentive Contracting Based on Reliability and Consumer Indifference,
Abstract
The paper presents two different incentive contracting plans which use the concept of life-cycle-costing and systems worth. One plan is based on the assumption of an exponential failure rate and uses this as a basis for determining systems worth. The other plan assumes no underlying failure rate distribution and uses nonparametric testing procedures for determining product reliability. Both plans use the concept of consumer indifference by adjusting the purchase price according to the product reliability as determined by field test. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1971
- Accession Number
- AD0768148
Entities
People
- Bryan W. Butler
- Joseph W. Foster
Organizations
- United States Army Materiel Command