The Swedish Defence has gradually been reoriented after the Cold War from a defence designed to meet a large invasion to a defence designed for missions both nationally and internationally. The aim of a description of the business logics for the Armed Forces is to explain the connections between political objectives, operative capabilities, defence structure, defence production and costs. This report primarily describes the logics for the defence production. The starting point for this logic is the defence structure that has been derived from political development scenarios, objectives for the Swedish security and foreign policies, and the needed operative capabilities. The report describes the needs of resources in the defence structure and how these resources are produced. Cost effectiveness and cost efficiency in the production is discussed and cost drivers are identified. The report can thus function both for educational purposes and as a source of ideas for potential improvements in the defence production.