Decision Risk Analysis of Site Selection for Production of the 105mm Projectile, XM710

Abstract

This report describes a risk analysis performed on the selection of a lowest cost producer for the initial production of XM710 ICM 105mm ammunition. The report assesses the risk associated with selection of a lowest cost producer when indirect expense is either included or excluded from the cost comparison. On the basis of this analysis, it is concluded that there is a risk involved in not including indirect expense as part of the cost comparison. It is also concluded that the addition of transportation costs to the economic analysis would not significantly change the risk associated with the selection of a lowest cost producer.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1976
Accession Number
ADA021190

Entities

People

  • Harold D. Gustofson

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Ammunition
  • Business Administration
  • Economic Analysis
  • Investments
  • Louisiana
  • Procurement
  • Production
  • Risk
  • Risk Analysis
  • Sensitivity
  • Site Selection
  • Sites
  • Systems Analysis
  • Transportation
  • Uncertainty
  • Workload

Readers

  • Industrial Economics
  • Life Cycle Cost Analysis
  • Munitions and Ordnance Engineering