This paper describes a set of methods and related tools developed for incorporating
cost into force-structure decisions involving a mix of Active Component (AC) and
Reserve Component (RC) units of particular types. The development effort was initiated
in response to Objective 1 of the “Comprehensive Review of the Future Role of the
Reserve Component,”1 which sought the development of a consistent, widely accepted
cost methodology for determining force mix. Determining the best mix of Active and
Reserve units is an important element of defense planning and force sizing. Active units
are often better able to deploy on short notice than Reserve units, and can be deployed
more frequently. Reserve units, on the other hand, are less expensive on a unit-for-unit
basis, allowing a larger force structure to be maintained for a given level of expenditure.
We have developed this methodology and set of associated computer-based tools to
facilitate comparison of alternative AC-RC force mixes for the Office of the Secretary of
Defense (OSD), the Joint Staff, and the Services.