A multiperiod capital budgeting problem: the ten-year acquisition program of the Turkish Armed Forces

Abstract

Structuring the Ten-year Acquisition Program of the Turkish Armed Forces is a critical problem faced during the defense planning process. This is essentially a resource allocation process. Since the decisions have long-term impacts on the defense capability of the Turkish Armed Forces, it is a high-priority concern of the top decision makers. In this study, a binary integer programming model is proposed which will aid the decision makers in their formulation of the acquisition process. This model determines which projects to select as well as the years at which they should be started. Viability of the model is shown by means of representative computational runs.