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A decision support system for the procurement of military equipment
Author(s) -
Anderson Evan E.,
Chen YuMin
Publication year - 1988
Publication title -
naval research logistics (nrl)
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.665
H-Index - 68
eISSN - 1520-6750
pISSN - 0894-069X
DOI - 10.1002/1520-6750(198808)35:4<619::aid-nav3220350413>3.0.co;2-l
Subject(s) - procurement , warranty , serviceability (structure) , system lifecycle , computer science , operations management , operations research , risk analysis (engineering) , reliability engineering , business , engineering , structural engineering , marketing , political science , law , software , application lifecycle management , programming language
The use of life‐cycle costs in procurement is limited by the accuracy of cost estimates and assessments of availability risks under the conditions generating costs. Critical to these problems are the needs and responses of equipment to maintenance and repair. Using transition probabilities to define the relationships between serviceability and maintenance and repairs, this article develops a comprehensive decision support system for military procurement. It uses a dynamic programming model to determine the least‐cost set of maintenance and repair decisions, where adjustments are included for warranty conditions, time value of money, the opportunity costs of equipment failure, and the end‐of‐cycle salvage values or disposal costs. The system allows users to define working and failed states, create their own rules or indicators of availability from estimates of state probabilities and establish thresholds of risk acceptability.