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Optimizing Budget Allocations in Naval Configuration Management
chapter
posted on 2023-05-22, 12:52 authored by Colin, A, Willett, R, Lambrineas, PThis paper describes a case study illustration of a technique that can be used to optimize capital expenditure budget decisions for engineering assets under multivariate objectives and uncertain costs. We define measures of capability increase relative to mission types and measures for risk, return and pseudo-correlation on potential maintenance upgrades, allowing portfolio optimization techniques from finance to be applied to asset management decisions. The results provide a risk-reward ratio for investment allocation decisions that is optimal. The work is aimed at capability management for naval platforms, but the technique has broader applicability in the field of asset management and multi-criteria decision making.
History
Publication title
Definitions, Concepts and Scope of Engineering Asset ManagementVolume
Engineering Asset Management Review 1Editors
JE Amadi-Echendu, K Brown, R Willett, J MathewPagination
95-113ISBN
978-1849961776Department/School
TSBEPublisher
SpringerPlace of publication
LondonExtent
20Rights statement
Copyright 2010 Springer-Verlag London LimitedRepository Status
- Restricted