Beschreibung:
<jats:title>ABSTRACT</jats:title><jats:p>A model is presented that yields optimal production rates for a firm producing a contracted order. The model is unique in that it considers the influence of production rate and learning on total program cost. An application to the specific characteristics of two military production programs is presented. As demonstrated by the application, models of this type may be used as decision‐making tools when negotiating the cost impact of contract modifications.</jats:p>