Date of Award

3-22-2012

Document Type

Thesis

Degree Name

Master of Science

Department

Department of Operational Sciences

First Advisor

William A. Cunningham III, PhD.

Abstract

This thesis analyzes the cost associated with the Minuteman III (MM III) weapon system. The research develops three models for determining MM III costs per alert hour (CPAH). The first model is based on the Air Force Cost Analysis Improvement Group cost per flying hour model. The model is modified to include depot level reparables, consumables, and personnel costs. The second model is based on the Office of the Secretary of Defense, Cost Analysis Improvement Group cost per flying hour model and is formulated using service-wide data from the Air Force Total Ownership Cost tool. The third model is a comprehensive model including indirect costs associated the ICBM-supporting installations. Additionally, this thesis includes a CPAH for each echelon or level of management for the MM III. The data reveals a relatively small marginal CPAH at the lowest levels. However, due to the robust support structure for the MM III, the models reveal significant fixed alert-hour costs. Finally, the thesis discusses the workings of the MM III cost structure that may benefit future budgeting decisions. Specifically, the step functions associated with each level of management and the large fixed costs. This thesis presents the three models as a starting point for developing a CPAH predictive model in future research.

AFIT Designator

AFIT-LSCM-ENS-12-12

DTIC Accession Number

ADA558466

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