This is a NAVAL POSTGRADUATE SCHOOL MONTEREY CA report procured by the Pentagon and made available for public release. It has been reproduced in the best form available to the Pentagon. It is not spiral-bound, but rather assembled with Velobinding in a soft, white linen cover. The Storming Media report number is A549424. The abstract provided by the Pentagon The purpose of this thesis is to analyze the relationship between predicted system reliability and planned spare parts levels. This will be accomplished through the integration of factors impacting spare parts levels and Life Cycle Costs into a spreadsheet model that will establish the appropriate relationship between the factors. This thesis will then attempt to determine the impact that varying estimations of reliability will have on both Life Cycle Costs and spares levels for the H-1 Upgrades Program.