Fully-Burdened Cost of Supply in Self-Sustaining Logistics Networks

Abstract

Cost estimates and other analyses for acquisition decisions should incorporate fully-burdened costs of the required commodities in the relevant planning scenarios. In addition to other widely-recognized challenges associated with estimating fully-burdened costs of supply, standard approaches systematically produce underestimates for self-sustaining logistics networks. The disparity is especially pronounced when multiple commodities consumed by logistics activities are not locally available. This work develops a model for estimating resource demands and overall cost associated with self-sustaining logistics networks, which can then be applied to specific examples.