The Economics of Made-to-Order Production : Theory with Applications Related to the Airframe Industry
by Thomas R. Gulledge, Norman K. Womer
I Introduction -- Statement of the Learning Augmented Economic Planning Problem -- Scope and Methodology -- II Historical Perspective -- The Origins of the Learning Curve -- Linking the Progress Function with Economic Theory -- Early Solutions for the Learning Augmented Planning Problem -- III Recent Results in the Analysis of Made-to-Order Production -- General Theoretical Results -- A Refinement of Alchian’s Propositions -- A Basic Model for Learning Augmented Production Analysis -- The Basic Model with a Variable Delivery Schedule -- The Importance of the Theoretical Framework -- IV Model Applications in the Airframe Industry -- Application to the C141 Airframe Program -- Production Cost Drivers -- The C141 Model -- Empirical Results -- Sensitivity Analyses -- Model Modifications and Extensions -- Summary -- V Two Production Function Model -- The Model Formulation and Solution -- Strategy for Application -- Sensitivity Analyses -- Application to the F102 Airframe Program -- VI Discrete Dynamic Cost Models -- A Dynamic Programming Model for Made-to-Order Production -- Simulations with the Dynamic Programming Model -- A Second Dynamic Programming Model for Made-to-Order Production -- A Third Dynamic Programming Model for Made-to-Order Production -- Relationships Among the Three Models -- An Application of a Discrete Dynamic Model -- Summary -- VII Empirical Production Rate Assessment Models -- Estimating Cost Impacts -- Contractor Behavior -- Summary -- VIII Summary and Conclusions.