The Effects of Equipment Age on Spare Part Costs

A Study of M1 Tanks

Carol E. Fan, Eric Peltz, Lisa Pelled Colabella

ResearchPublished Oct 24, 2005

As the average ages of Army weapon systems increase, it has been assumed that this is leading to increasing maintenance costs. However, it has proved difficult to quantitatively “validate” and estimate the actual effect of equipment age on costs. In particular, it has been noted that increases in costs may have been “hidden” by how Army budgets are structured or mitigated by adaptations in part-ordering practices that are not reflected in spending and budgets. This study examines the relationship between equipment age and spare part costs for M1 Abrams tanks through the use of part requisition data. The authors also examine the issue of adaptive practices by comparing actual part expenditures to an exchange price-based valuation of part demands. This work is closely related to a companion study on the effects of equipment age on mission critical failures, a key component of equipment readiness.

Topics

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 2005
  • Pages: 84
  • Document Number: TR-286-A

Citation

Chicago Manual of Style

Fan, Carol E., Eric Peltz, and Lisa Pelled Colabella, The Effects of Equipment Age on Spare Part Costs: A Study of M1 Tanks. Santa Monica, CA: RAND Corporation, 2005. https://www.rand.org/pubs/technical_reports/TR286.html.
BibTeX RIS

Research conducted by

The research described in this report was sponsored by the United States Army and conducted by the RAND Arroyo Center.

This publication is part of the RAND technical report series. RAND technical reports, products of RAND from 2003 to 2011, presented research findings on a topic limited in scope or intended for a narrow audience; discussions of the methodology employed in research; literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; and preliminary findings. All RAND technical reports were subject to rigorous peer review to ensure high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.