Consumer Indifference Curve Relating Reliability to Purchase Price.
Abstract
When operating under an indifference contracting plan for reliability, it is necessary to construct payment curves relating reliability to purchase price. This paper presents general methods that can be used to generate the indifference curves when using the concept of life cycle cost. In addition, a model utilizing a queueing approach to equipment failures is presented. This model is used to generate indifference curves relating purchase price to mean life. Examples are given for generating the indifference curves under two types of procurement plans for indifference contracting. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1973
- Accession Number
- AD0784057
Entities
People
- Roger L. Spangenberg
Organizations
- United States Army Materiel Command