Date of Award

3-1998

Document Type

Thesis

Degree Name

Master of Science in Operations Research

Department

Department of Operational Sciences

First Advisor

Richard F. Deckro, PhD

Abstract

LCC analysis is a powerful tool for investigating the costs of competing systems. This thesis investigates the cost scaling methods to improve the traditional LCC modeling techniques. The motivation for this research is finding a good estimate for the remediation technologies when the contaminant volume is not exactly known. This specific case lead researcher to investigating the methods of cost scaling and effects of inflation in the cost estimation. As a result of study a generic LCC model is developed. Methods for considering inflation and scaling are recommended and embodied into the model. The developed model is applied the specific case and used to analyze the cost of alternative remediation technologies. Results of the research suggests that scaling can be accomplished with better accuracy if there is data and if the scaling can be performed at the level of cost elements in the cost breakdown structure. Inflation effects can be handle by ignoring or estimating the future inflation rates from the past rates. This study suggests that inflation rate should be investigated, before using general cost indices, for special elements which effects the cost of the system.

AFIT Designator

AFIT-GOR-ENS-98M-08

DTIC Accession Number

ADA342271

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