Accession Number : ADA189497

Title :   Using Second-Order Polynomials as Production Functions.

Descriptive Note : Master's thesis,

Corporate Author : AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING

Personal Author(s) : Revetta, James J , Jr

PDF Url : ADA189497

Report Date : Dec 1987

Pagination or Media Count : 103

Abstract : This research attempted to show that an Air Force unit can be modeled as an industry with its output determined through a production function. A second-order polynomial was used as the production function in this research. A resource-allocation simulation was used to generate the data for analysis. Only two input factors were analyzed--support kits and maintenance crews. In this way, these two inputs could be compared to the microeconomic factors of production--capital and labor. Basic Response Surface Methodology (RSM) techniques were used to estimate the second-order polynomial. Experimental designs in the form of central composite designs (CCD) were used to determine the input factor combinations. A complete statistical analysis of the pure linear model and the second-order model, complete with statistical tests and ANOVA, was performed. Basic microeconomic definitions of first-and second-order conditions were discussed and the conditions for least-cost combinations of the inputs for the second-order polynomial were derived. The problems associated with using simulated data to estimate production functions were outlined. Some benefits of using a second-order polynomial as a production function in comparison with the commonly used Cobb-Douglas and Constant Elasticity of Substitution (CES) production functions were discussed.

Descriptors :   *SYSTEMS ENGINEERING, *AIR FORCE OPERATIONS, *RESOURCE MANAGEMENT, *INDUSTRIAL ENGINEERING, CREWS, INPUT, LINEAR SYSTEMS, MAINTENANCE, MATHEMATICAL MODELS, METHODOLOGY, PRODUCTION, PURITY, STATISTICAL ANALYSIS, STATISTICAL TESTS, THESES, MANPOWER UTILIZATION, COST ANALYSIS, REGRESSION ANALYSIS, ANALYSIS OF VARIANCE

Subject Categories : Operations Research
      Military Forces and Organizations

Distribution Statement : APPROVED FOR PUBLIC RELEASE