-
The upper limit or ceiling on the load that an operating unit can handle.
Capacity
-
The maximum designed service capacity or output rate.
Design Capacity
-
Design Capacity minus personal and other allowances
Effective Capacity
-
Extra Capacity used to offset demand uncertainty
Capacity Cushion
-
An operation in a sequence of operations whose capacity is lower than the other operations
Bottleneck Operation
-
If the output rate is less than the optimal level, increasing the output rate results in decreasing average unit costs.
Economies of scale
-
If the output rate is more than the optimal level, increasing the output rate results in increasing average unit costs.
Diseconomies of scale
-
Something that limits the preformance of a process or system or system in achieving its coals.
Constraint
-
The volume of the output at which total cost and total revenue are equal
Break-even point (BEP)
-
The difference between cash received from sales and other sources, and cash outflow for labor, material, overhead, and taxes.
Cash Flow
-
The sum, in current value, of all future cash flows of an investment proposal.
Present Value
-
Table showing the expected payoffs for each alternative in every possible state of nature.
Payoff Table
-
The limitations on decision making caused by the coasts, human abilities, time, technology, and availability of information.
Bounded Rationality
-
The result of different departments each attempting to reach a solution that is optimum for that department.
Suboptimization
-
Enviroment in which certain future events have probable outcomes.
Risk
-
Enviroment in which it is impossible to assess the likelihood of various future events
Uncertainty
-
Choose the alternative with the best of the worst possible payoffs.
Maximin
-
Chooses the alternative with the best possible payoff
Maximax
-
Choose the alternative with the best average payoff of any of the alternatives.
Laplace
-
Choose the alternative that has the least of the worst regrets.
Minimax regret
-
The difference between a given payoff and the best payoff for a state of nature.
Regret (Opportunity Loss)
-
The best expected value among the alternatives
Expected monetary value (EMV) criterion
-
A schematic representation of the available alternatives and their possible consequences.
Decision Tree
-
The difference between the expected payoff with perfect information and the expected payoff under risk.
Expected value of perfect information (EVPI)
-
Determining the range of probability for which an alternative has the best expected payoff
Sensitivity Analysis
-
Enviroment in which relevant parameters have known values
Certainty
|
|
