Integration of cost modeling and business simulation into conceptual launch vehicle design

Abstract

This paper reports on research that integrates cost modeling and business simulation into conceptual design environments for advanced launch vehicle programs. A new design-oriented computer tool has been developed and used that is capable of using priceelastic market estimates, price optimization, vehicle characteristics, and historical operations data to predict key business indicators such as return on investment (ROI), internal rate of return (IRR), maximum exposure, and break-even point (BEP). This paper includes a brief introduction to this tool called Cost And Business Analysis Module (CABAM). In addition, this paper reports on the results of work to integrate the cost analyst, via CABAM, into the advanced conceptual design process (i.e. performance, propulsion, aerodynamics, weights, internal layout, aeroheating, etc.). Using industry standard tools and design practices within a controlled university environment, three sample launch vehicle concepts were designed with varying l...