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

Historical development of operations management, explain the evolution of o...

explain the evolution of operations management, highlighting the key stages of developments taken place in the operations management practices in modern day organizations.

Explain bruce wayne routinely participates in activities, Bruce Wayne routi...

Bruce Wayne routinely participates in activities such as skydiving, rock climbing and bungy jumping. His employer told him to stop the activities or they would cancel his health in

Explain modern healthcare systems, EBSCO Online Library, use the search fun...

EBSCO Online Library, use the search function, and read the following article. Then complete the discussion forum question. Developing leadership talent in healthcare organizations

Rules related to the use the human body, Rules Related to the  use  the ...

Rules Related to the  use  the Human  Body: R elated to the  use  the Human  Body : a.   The two  hands should  beings  as well as  complete their  motions  at the same

Explain the decision tree layout for the expando company, What is the Decis...

What is the Decision Tree layout for the Expando Company

Explain underpin traditional public personnel management, what are the assu...

what are the assumptions that underpin traditional public personnel management

Describe the importance of each in relation to outsourcing, List five consi...

List five considerations to consider when starting to define the scope of the business process outsourcing transaction and discuss the importance of each in relation to outsourcing

Explain when is it said to have a normal distribution, When a value of a va...

When a value of a variable(like the possible number of people who might be interested in your product) is said to have a normal distribution, how do the highest and lowest possible

Capasities in both manufacturing and service sector operatio, define the te...

define the term "operation management" and expailn the importants of operation management theories in both manufacturing and services

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