11010_flex2frame - Flexibility II Flexibilty expressed...

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Flexibility II Flexibilty expressed through on-orbit servicing Provider and Servicer perspective Upgrading vrs life extension Flexibility and On Orbit Servicing In an interesting paper, Saleh argues that the real value of on-orbit servicing lies in the flexibility that it brings to a space architecture. In particular, he argues having the option to service (or abandon) has value in itself and this value must be accounted for using a real options approach. He also argues that a more persuasive analysis of on orbit serving occurs be breaking apart the servicer and the provider perspective. This was a major breakthrough in understanding how to value flexibility. Nilchiani argues that when flexibility is taken into account as well as performance and cost in a servicing architecture then the choice of an “optimal” servicing architecture is a strong function of the mix of flexibilities that are emphasized. She defines different mixes for commercial versus military space architectures which includes different emphases on fast response
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This note was uploaded on 11/08/2011 for the course AERO 16.851 taught by Professor Ldavidmiller during the Fall '03 term at MIT.

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