| Abstract: | This paper proposes the use of a set of simultaneous, modified Cobb-Douglas production functions to determine the “best” mix of aircraft inputs (men, spare parts, support equipment, etc.) to achieve certain levels of output. The simultaneous equations are “solved” by the use of proxy values in an iterative search process. Tests of this production function model indicate that real world data fits quite well (R2 ranges from 0.884 to 0.951) and the residuals do not appear to have any significant bias. The aircraft production functions for several types of aircraft (F-4, A-7, A-6, A-4) have been maximized for a fixed budget and specific constraints. A potential increase in output of up to 10 percent appears possible. In general the marginal value of spare parts surpasses the other inputs. |
