[Sample B: Approval/Signature Sheet] - George Mason University

7. COST EFFECTIVENESS ANALYSIS
The sensitivity analysis revealed interesting aspects of the model and the systems
under consideration, providing important insights about the contributions of each aircraft
system. The cost effectiveness analysis can be used to provide more valuable information
to support the DM. The only costs considered for this analysis were the estimated
acquisition costs of one unit of the requested system. This is one limitation of the
methodology, since no life-cycle costs are available at this phase of the process, which
could provide more insights to the DM and a more detailed analysis.
The approach consists of a graph where all the alternatives‘ utilities are compared
against their cost. The objective is to present the results in a clear, concise and easy to
understand way. 124
In this example, the area of the graph is divided in four parts, where it is possible
to classify the alternatives in terms of their cost effectiveness:
1. Low Cost / High Utility
2. High Cost / High Utility
3. High Cost / Low Utility
4. Low Cost / Low Utility
124 David A. Fulk, Theodore P. Lewis, and Gloria Castro, ―Analysis Support for Acquisition: Part I:
Analysis of Alternatives,‖ in Methods for Conducting Military Operational Analysis, ed. Andrew G.
Loerch and Larry B. Rainey (Military Operations Research Society, 2007), 171.
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