Accession Number : AD0722377

Title :   The Cost of Squadron Operation: A Theoretical and Empirical Investigation,

Corporate Author : CENTER FOR NAVAL ANALYSES ARLINGTON VA

Personal Author(s) : Brown,George F. , Jr. ; Schwartz,Arnold N.

Report Date : JAN 1971

Pagination or Media Count : 15

Abstract : The purpose of this analysis is to determine the relationship between the cost of the resource inputs employed by Naval aviation squadrons and the level of output produced by them. Such squadrons employ a mixture of aircraft, maintenance labor, and spare parts in the production of tactically available aircraft. As these inputs are both substitutes for and complements to one another, the minimum cost combination of inputs capable of producing the desired level of output is sought. To meet these objectives, a production function, relating the level of squadron output to the levels of inputs used, is estimated econometrically, using non-linear estimation techniques. The combination of inputs producing the maximum output, given a budget constraint, is then determined analytically. These techniques are applied to several types of aircraft in the Navy inventory. The minimum cost of achieving various output levels is then determined. (Author)

Descriptors :   (*NAVAL AIRCRAFT, *COST EFFECTIVENESS), (*NAVAL EQUIPMENT, MAINTENANCE), SPARE PARTS, LABOR, NAVAL PROCUREMENT, PARTIAL DIFFERENTIAL EQUATIONS, NUMERICAL ANALYSIS, MILITARY BUDGETS, TABLES(DATA)

Subject Categories : Aircraft
      Economics and Cost Analysis
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE