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 influence consumer''s buying behavior, Why it is important for mark...

Why it is important for marketers to fully understand today's consumer behavior? Explain the factors that influence consumer's buying behavior. Provide at least one or two examples

Explain is the petterson operations successful, Carrington inc is an intern...

Carrington inc is an international company engaged in the production and distribution of pharmaceutical is the petterson operations successful? To the degree that it can be judged

Explain important in work-center scheduling, Why is managing bottlenecks so...

Why is managing bottlenecks so important in work-center scheduling?

Explain brief business plan that highlight the financial, Imagine that you ...

Imagine that you are beginning the first social networking site, fast-food restaurant or pizzeria, and develop a brief business plan that highlight the financial, marketing and org

Explain planning of the project, You have been appointed as a project manag...

You have been appointed as a project manager for a high dollar project for the private sector and you have been asked by your boss to identify the stakeholder groups and the indivi

Explain shipments to just-in-time, Why are organizations changing from batc...

Why are organizations changing from batch (large) shipments to just-in-time (JIT) shipments?

Chase plan, Chase Plan The workforce size is varied as per to demand k...

Chase Plan The workforce size is varied as per to demand keeping the use of workers and inventory size constant. During months of low demand the workforce size is decrease and

Explain facility for your logistical operations, What is the most important...

What is the most important factor to keep in mind when considering a facility for your logistical operations?

Define the worshiping of a deity is required, the worshiping of a deity is ...

the worshiping of a deity is required in order for a belief to be considered a religion.

Give the definition of a team, QUESTION (a) Give the definition of a te...

QUESTION (a) Give the definition of a team as well as elaborate on the purpose of having teams in the organisation. (b) Explain the different processes that take place in a

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