A method of prediction is proposed to provide credible, timely and complete price information on spare parts and repair parts. The methodology, a novel computer-based systems approach, is also applicable to complete unit and subassembly cost and price estimates. Techniques are proposed to establish criteria for minimum expenditures and reasonableness of prices prior to contract award, as well as methods for a procurement strategy to match changing circumstances in the economy and mode of operation. The concepts of material and information flow are introduced, and a means to separate cost from price is proposed. Four major problem categories are identified: parts-system, process-system, cost-structure and dynamic inventory, and are discussed in detail.
