Decision tree analysis applied to capacity expansion, Operation Management

Assignment Help:

Decision Tree Analysis Applied to Capacity Expansion

Linear programming and computer simulation models focus on the short term question of how to use existing capacity. But the planner alsofaces long terms decisions. One such decision has to do with capacity expansion. One technique for analysis this and other sequential decisions is decisions tree analysis.
 Decision tree analysis comprises the followings steps:

A.Tree Diagramming

  1. Identify all decisions points and the order s(sequence ) in which they occur.
  2. Identify alternative decisions for each decision point.
  3. Identify the change events that can occur after each decisions]
  4. Develop a tree diagram showing the sequence of decisions and change event

B.Estimation

  1. Estimate the probability for each possible outcome of each change event.
  2. Estimate the financial consequence of each possible outcome and decisions alternative .

C.Evaluation and Selection

  1. Calculate the expected valued of each decisions alternative
  2. Select the decisions alternative offering the most attractive expected value.

Related Discussions:- Decision tree analysis applied to capacity expansion

Explain project manager make changes to a baseline, under what conditions w...

under what conditions would a project manager make changes to a baseline? Be sure to give at least 1 example for each condition

Statistical process control, Statistical Process Control Quality Plann...

Statistical Process Control Quality Planning is a key feature of TQM is the prevention of non-conformance. Two of the pioneers of TQM, Edwards Deming and Joseph Juran, strongl

Describe shared storage policies and list example, Define shared storage po...

Define shared storage policies and list example that it is practice in real life?

Explain organizational behaviour and productivity, How would you describe t...

How would you describe the culture of your organization? How does your organization "feel" (climate)? Where do you see the evidences of your organization's culture? How does the cu

What is cutting stock problem, Consider the cutting stock problem that aris...

Consider the cutting stock problem that arises when a company manufactures sheets of standard width 100 and has commitments to supply 40 sections of width 40, 60 sections of width

Explain linear programming concept paper, Linear Programming Concept paper....

Linear Programming Concept paper. Submit a Linear Programming Concept Paper about the following: • The two types of linear programming discussed. • Five examples of LP applic

Describe two methods for allocating cost analysis, Explain two methods for ...

Explain two methods for allocating costs. Justify why you selected them and how you would make the most use of them in cost analysis.

ERP, DESCRIBE THE ENTERPRISE RESOURCE PLANNING

DESCRIBE THE ENTERPRISE RESOURCE PLANNING

Describe culture and values and ethics, Discuss culture, values, ethics, an...

Discuss culture, values, ethics, and other such elements that lead to differences in social culture; 2) Explain the business and economic implications of differences in culture and

Explain timmy says he doesn like getting swindled, Timmy Thompson, who fini...

Timmy Thompson, who finished his second year at a local community college last May, sees an advertisement to rent an apartment at Ocean Apartments for $1,500 a month. Timmy walks i

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd