A cost analysis for deciding service levels in Korean Army with a constraint for single period

Since 1953 there has been a fierce military competition between the Republic of Korea (ROK) and the Democratic People's Republic of Korea (DPRK). The DPRK has committed over 10% of its GNP since 1963 to defense expenditures, whereas, the ROK has spent a relatively small portion (3-6%) of GNP over the same period. Because the U.S. plans to withdraw from the ROK in the near future, a heavy burden will be imposed upon the South Korean government to maintain its national defense. The U.S. withdrawal will result in the delay of achieving a military balance in the Korean Peninsula. Under these conditions, it becomes essential to find the most efficient allocation of the defense budget so as to get the most high-tech weapons, and achieve military balance with the DPRK at the soonest possible time. The purpose of this thesis is to compute the service levels for critical items with the present budget and to determine whether the budget is used effectively in the ROK Army. Cost analysis methods are used to solve the problem. An application of this methodology is shown with an illustration. This analysis shows that different items call for different service levels.
http://archive.org/details/acostnalysisford1094534840
Major, Republic of Korea Army
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