Analysis and Recommendation for a Fifteen Percent Cut in Space and Naval Warfare Command for Management Support Services

Abstract

In this MBA project, we develop a linear programming model to use as a capital budgeting decision support tool for the Space and Naval Warfare Systems Command (SPAWAR). The Office of Management and Budget (OMB) is requiring a 15% reduction in SPAWAR's spending on management support services in the fiscal year (FY) 2014 budget. This thesis develops an operational linear optimization decision model meant to provide analysis and recommendations to support the decision-making by SPAWAR on achieving the required spending reduction within 10 product service codes (PSCs) with minimal impact to the warfighter. The model is easy to use and can be adjusted to account for changes in the decision environment of SPAWAR. Based on our optimization decision model results and analysis, we provide recommendations to SPAWAR for PSC spending that can be effectively utilized for the FY2014 budget.