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Capacity Planning

POM97pre

Capacity Planning Example

Expected Monetary Value (EMV) and Minimax Regret Criteria

State

('000)

Probabilities 50% 30% 20% EMV

Buil !e" #tore $9 $& ($&) $990 Best

Decision pan Ol #tore $5 $5 ($3) $*&0

+o !ot,ing $5 $ ($) $2-0

Regret Table State

Buil !e" #tore $0 $ $3 $3 BestDecision pan Ol #tore $& $0 $2 $&

+o !ot,ing $& $& $0 $&

Payo Table (Pro.its)

Mar!et"pturn

StableMar!et

Mar!etDo#nturn

Mar!et

"pturn

Stable

Mar!et

Mar!et

Do#nturn

Max

Regret

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$ggregate Planning Example

Data

Beginning /nentory 0

Beginning 1orers 5*

#t i4e rs per "orer per 4ont, -0

Ma O ours per "orer per 4ont, &0

iring Cost per "orer $&6000

ayo.. Cost per "orer $56000

#t i4e Pay per "orer per ,our $*

O Pay per "orer per ,our $25abor ours per unit prouce &

8a" Materials Cost per unit $0

oling cost per unit per 4ont, $2

#,ortage Cost per unit per 4ont, $5

#ubcontracting Cost per unit $20

Staing Plan

Mont% & ' * +

1orers .ro4 Preious Mont, 5* 5* 5* 5* 5* 5*

1orers ire 0 0 0 0 0 0

1orers ai O.. 0 0 0 0 0 0

1orers a.ter ire an ayo.. 5* 5* 5* 5* 5* 5*

: : : : : :Mini4u4 1orers 0 0 0 0 0 0

#t i4e ours ;se *2**0 *2**0 *2**0 *2**0 *2**0 *2**0