Citation

Keating EG, Dixon M. Def. Peace Econ. 2004; 15(5): 421-431.

Copyright

(Copyright © 2004, Informa - Taylor and Francis Group)

DOI

10.1080/1024269042000246224

PMID

unavailable

Abstract

An availability-oriented approach has been developed to decide when to replace an aging system. For an existing system, it is optimal to operate another year if and only if the incremental cost per available year is less than the lifetime average cost per available year of a new aircraft. We illustrate our approach using United States Air Force KC-135 tanker data. In demonstrating our approach, we find it will be optimal to replace the KC-135 by the end of the decade.