A Classroom Exercise to Examine the Trade‐off between Mission Capacity and Life Cycle Cost. (January 2015)

• Record Type: Journal Article
• Authors: Kang, Keebom; Doerr, Kenneth H.
• Is Part Of: Decision sciences journal of innovative education. Volume 13:Number 1(2015:Jan.)
• Page Start: 3
• Page End: 20
• Publication Date: 2015-01
• Subjects: Business education -- Periodicals; 658.00711
• DOI: 10.1111/dsji.12055
• Languages: English
• ISSNs: 1540-4595

Abstract

<abstract abstract-type="main"> <title>ABSTRACT</title> <p>This article presents a classroom exercise, centered on a simulation that has been used for 4 years in an MBA program to help students develop an understanding of the trade‐offs involved in managing capital assets in the public sector. Though often ignored in business schools, <italic>mission</italic> is a key criterion that must be considered when managing such assets, and acts as a surrogate for profit. The case presents a rich environment in which the impact of cost reductions (or additional investments) on mission can be quantified, and trade‐offs can be assessed and discussed. It gives students a chance to develop creative ideas for process improvement, and provides sufficient data for them to analyze the impact of their suggestions in a rigorous way.</p> </abstract>