Acquisition Cost Estimating Using Simulation.

Abstract

Acquisition cost estimates developed as single point values are, at best, misleading and, at worst, impossible to achieve. Single point estimates do not sufficiently reflect the assumptions, judgment or apprehensions of the estimator. This paper deals with a technique for incorporating uncertainty and risk into the acquisition cost estimating procedure such that the estimates are presented as a range of values, encompassing engineering, manufacturing and logistic support estimates. The cost estimating model, a pragmatic application of simulation and classical cost estimating precedures, has been programmed in BASIC and is generalizable and exportable.

Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1975
Accession Number
ADA015624

Entities

People

  • Henry C. Okraski
  • William F. Parrish Jr.

Tags

DTIC Thesaurus Topics

  • Acquisition
  • Cost Estimates
  • Costs
  • Engineering
  • Estimators
  • Judgment
  • Manufacturing
  • Manufacturing Engineering
  • Simulations
  • Uncertainty

Readers

  • Life Cycle Cost Analysis
  • Systems Analysis and Design
  • Theoretical Analysis.