Date of Award

3-10-2010

Document Type

Thesis

Degree Name

Master of Science in Cost Analysis

Department

Department of Operational Sciences

First Advisor

Jeffrey A. Ogden, PhD

Abstract

The Department of Defense is currently operating in a fiscally constrained environment, and Air Force leaders are pressured to minimize spending while pursuing mission critical objectives. Personnel travel usurps a significant portion of the Air Force’s annual operations and maintenance (O&M) budget each year, but receives little attention with respect to cost saving strategies. During the Air Force’s implementation of the Expeditionary Combat Support System (ECSS), in which over 250,000 end-users will require training, it is vital that the Department determine the training locations that minimize costs incurred through personnel travel. This thesis seeks to determine which potential ECSS training locations minimize travel costs, and thus reduce the system implementation’s impact on the Air Force’s constrained O&M budget. Airfare and per diem rates vary significantly depending on the travel destination, which naturally makes some potential training locations more costly, with respect to travel expenses, than others. In this research, the findings indicate that using a linear programming approach to identify the optimal ECSS training locations can potentially reduce overall travel costs from 80% to more than 130%. Furthermore, the research findings indicate that the Air Logistics Centers located at Robins, Hill, Hanscom and Tinker are likely to minimize travel costs for ECSS training if the supply, or training capacity, at these locations can satisfy the demand for training.

AFIT Designator

AFIT-GCA-ENS-10-01

DTIC Accession Number

ADA521352

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