A Classroom Exercise to Examine the Trade‐off between Mission Capacity and Life Cycle Cost |
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| Authors: | Keebom Kang Kenneth H Doerr |
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| Institution: | Graduate School of Business and Public Policy, Naval Postgraduate School, Monterey, CA |
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| Abstract: | This article presents a classroom exercise, centered on a simulation that has been used for 4 years in an MBA program to help students develop an understanding of the trade‐offs involved in managing capital assets in the public sector. Though often ignored in business schools, mission is a key criterion that must be considered when managing such assets, and acts as a surrogate for profit. The case presents a rich environment in which the impact of cost reductions (or additional investments) on mission can be quantified, and trade‐offs can be assessed and discussed. It gives students a chance to develop creative ideas for process improvement, and provides sufficient data for them to analyze the impact of their suggestions in a rigorous way. |
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| Keywords: | Capacity Planning for Public‐Sector Defense Industry Decision‐Support for Public‐Sector Government Acquisition and Logistics Risk Management for Public Sector |
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