A Total Ownership With Life-Cycle Cost Model Under Uncertainty for Surface Ship Electro-Optic and Infrared Systems

Abstract

This thesis examines the basics of total ownership cost (TOC) modeling over the life cycle of electro-optic/infrared sensors, including the inception phase of Acquisition Costs, followed by annual Operations and Maintenance (O&M) expenses, and a final set of Disposition Costs at the end of life of the sensor. This model allows cost analysts to have better decision analytics of the costs for use in cost comparisons across sensor platforms, return on investment analysis, portfolio allocation of resources, and analysis of alternatives. The findings show that the developed model is functional and could be used in the Department of Defense total ownership cost estimation process to facilitate decisions among sensor platforms.