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

What is the theoretical minimum number of stations, A company is setting up...

A company is setting up an assembly line to produce 192 units per 8-hour shift. The following table identifies the work elements, times and immediate predecessors:  (a)  Wh

Describe what role organizational structure plays, Discuss what role organi...

Discuss what role organizational structure plays in an organization's efficiency & effectiveness

Explain manufacturing sector and service sector, As a library or Internet a...

As a library or Internet assignment, find the US productivity rate (increase) last year for the (a) national economy, (b) manufacturing sector, and (c) service sector. Where can yo

Practice Question.., 4. (32 points) You and your roommate are planning to o...

4. (32 points) You and your roommate are planning to open “Pizza In The Dorm” to make and distribute fresh pizza from your dorm room. You plan to provide 100% fresh, high quality p

Manufacturing sector - operation strategy, Manufacturing Sector - Operation...

Manufacturing Sector - Operation Strategy 1. Manufacturing has become a global industry with worldwide markets and worldwide suppliers  2. Goods becoming commodity items -

What role do alter agents play in the execution of a road, What things shou...

What things should be taken into consideration in the creation of a roadmap for a strategic plan? What are examples of external and internal change agents? What role do change agen

Preparing the research design, Preparing the Research Design: Researc...

Preparing the Research Design: Research design is the conceptual structure within which research should be conducted. A research design specifies the methods and procedure fo

Explain what kind of warning signals would you like, 1. What kind of warnin...

1. What kind of warning signals would you like fed back from PAC to MRP? 2. Lead times are sometimes called rubbery. What accounts for this concept of elasticity in lead times?

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