A modified block replacement policy

A well known preventive replacement policy is the block replacement policy (BRP). In such a policy the item undergoes a planned replacement at a sequence of equally spaced time points independent of failure history. The main advantage of a BRP is its simplicity, because under this policy it is unnecessary to keep detailed records about times of failures or ages of items. The main drawback of a BRP is that at planned replacement times we may be replacing practically new items. In this paper we study a modified BRP which is free of this drawback. We calculate the expected cost of following a modified BRP for lifetime distributions possessing a special structure and illustrate it for the case of an Erlang distribution. A numerical comparison is made between a modified BRP and a standard BRP for the special case of a two stage Erlang distribution.     

An evaluation of incentive contracting experience

Incentive contracts are intended to motivate defense contractors to perform more efficiently and control costs more closely. By increasing the total profit as actual costs are reduced below a predetermined cost target, they encourage contractors to achieve cost under runs. Consequently, the principal advantage claimed for these contracts is that they make the financial incentives to reduce costs more effective. This study examines the effectiveness of incentive contracts as a means for controlling defense procurement costs. The study considers the various effects that incentive contracts may have on both contractors' performance and contract costs, and presents empirical evidence suggesting that these contracts may not have accomplished their intended goal of increased efficiency and lower procurement costs.     

Book reviews

Nationalism and Ethnic Conflict: Threats to European Security. By Stephen Iwan Griffiths. SIPRI Research Report No. 5. Oxford University Press, Oxford (1993), ISBN 0-19-829162-0, £16.50.

Red Storm on the Reich, By C.J. Duffy. Routledge, London (1991) ISBN 0-415-0359-9, £35.00.

Gangsters and Revolutionaries. By R. Cribb. Allen and Unwin, ISBN 0-O4-301296-5 (1992), £12.95.

The Cyanide War. By E. O'Ballance. Brassey's, London (1989). ISBN 0 08 036695 3, Price £18.00.     

Use it or lose it: On the incentives to spend annual defence operating budgets

In most western countries, there is a strong incentive for defence department budget-holders to expend all of the funds they are authorized to spend in a fiscal year. In this paper, we question whether this emphasis makes sense. We develop a model of a defence department’s operating expenditure assuming a fixed level of funding for a year and uncertain costs. The results of the model suggest that the incentive for departmental managers to expend all authorized funds is inefficient. We explore the implications of the model for the Department of National Defence (DND) in Canada in light of the recent criticism of DND lapsed funding by the Auditor-General of Canada.     

ADVANCED US CONVENTIONAL WEAPONS AND NUCLEAR DISARMAMENT

The Obama administration has made a great effort to increase the role of advanced conventional weaponry in US national security thinking and practice, in part to help reinvigorate the global nuclear disarmament agenda by reducing the role played by nuclear weapons in the US defense posture. However, such a strategy is fundamentally flawed because increases in US conventional superiority will exacerbate US relative strength vis-à-vis other powers, and therefore make the prospect of a nuclear weapon-free world seem less attractive to Washington's current and potential nuclear rivals. Consequently, it is highly likely that the impact of efforts to increase US advanced conventional superiority through ballistic missile defense and a conventional “prompt global strike” program will ensure that the Obama administration is adopting a pathway to nuclear abolition on which it is the sole traveler for the foreseeable future.     

Convoys to combat Somali piracy

As the world becomes increasingly globalized, interruptions to international trade cannot be permitted. Piracy off the coast of Somalia has hampered international trade in the region and poses significant risks to the sailors required to navigate those waters. Over the past three years the global community has attempted, through a number of different naval tactics, to stop these acts of piracy; however, these tactics have proven ineffective. This article looks at historical precedence and military theory to support the concept of using convoys to protect the thousands of cargo vessels traveling round the Horn of Africa every year. This tactic will greatly decrease the number of successful pirate attacks and save countless lives in the process.