Learning and costs in airframe production: A multiple‐output production function approach

Abstract This article examines the influence of both production rate and learning on airframe program costs. A dynamic multiple‐output production model is developed and is used to observe the cost impact of changes in production rate and learning. Several simulations are performed to demonstrate the sensitivity of the optimal time path of cost to changes in the model parameters. The model is applied by estimating parameters from the F102 airframe program.