Planning Army Recapitalization Investment Strategies
Abstract
The Army's overall recapitalization requirement of $59 B as determined by the half-life metric far exceeds the $35 B currently programmed over the next 10 years. The Defense Planning Guidance (DPG) 2003-07 directs the Services to make a more detailed assessment of recapitalization needs and to report optimum recapitalization rates. Planning Army Recapitalization Investment Strategies (PARIS) is what the Center for Army Analysis (CAA) used to determine these rates. A basic question with aging equipment is at what point is it cost-effective to recapitalize rather than pay increased operations and maintenance costs. Based on a fleet management model developed for this project, PARIS develops a strategy that minimizes fleet ownership costs of a set of Army fleets using a mixed integer program. The PARIS approach provides the Army with a more robust way of determining recapitalization quantities than using the less defensible half-life approach. The result is a more efficient and analytically defendable use of programmed dollars.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2002
- Accession Number
- ADA411597
Entities
People
- Allen C. East
Organizations
- Center for Army Analysis