Effective Capital Provision Within Government: Methodologies for Right-Sizing Base Infrastructure
Abstract
The objective of the study is to provide recommendations for an efficient facility policy for sizing Air Force base infrastructure and to improve the utilization of facilities. The research question is a central policy problem facing the Air Force: How much capital infrastructure should the Air Force own versus lease through other providers? The study looks specifically at an Air Force base lodging operation and evaluates policies for efficient government-owned capacity levels. At Maxwell Air Force base, the Air Force is currently expending $4 million per year to house Air Force students in local hotels due to insufficient on-base capacity. Meanwhile, annual on-base occupancy figures reveal significant slack capacity in on-base facilities of approximately 20%. This dissertation examines how Air Force decision-makers should evaluate this trade-off to determine the on-base capacity that minimizes total cost. The dissertation motivates why current government metrics and methodologies are insufficient and provides an analytic approach suitable for capacity sizing decisions in any variable demand system. The author develops an inventory simulation model that determines the least-cost inventory (capacity) and allows decision-makers to evaluate what-if' policy scenarios that affect lodging. The results from the research have broader implications for facility sizing decisions within the other military services, other government agencies, and the private sector.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 10, 2004
- Accession Number
- ADA428004
Entities
People
- Joshua C. Weed
Organizations
- RAND Corporation