Initial Provisioning/Initial Spares: A Question of Semantics and Cost.
Abstract
The terms initial provisioning and initial spares are often used interchangeably. However, repeated experience has shown that they result in very different cost estimates, with initial spares estimates usually being much larger. A review of cost estimates, their underlying mathematics, and initial provisioning and initial spares are two different concepts. Initial provisioning is a concept used in the logistics and budget community; initial spares is a concept used in the cost analysis community. There is a disconnect between logistics and budget on the one hand, and cost analysis on the other in this area. The purpose of this report is to surface and explain this disconnect and to identify possible methods of ending it. This study will explain both concepts and develop a conceptual framework which is suitable for logistics, budget and life cycle cost estimating. The conceptual framework is designed to highlight the similarities and especially the differences between initial provisioning and initial spares. It is an integrated analysis--in two ways: logistics and cost analysis perspectives are integrated; Investment costs and Operating and Support (O&S) costs are integrated, so that life cycle costs are properly represented.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1983
- Accession Number
- ADA129321
Entities
People
- Mark W. Glenn