Capacity Planning – Meaning, Classification and its Goals
February 12, 2025
What are Smart Cities and How They Have the Potential to Revolutionize Urban Living We often hear the term Smart Cities mentioned in the media. We also come across excited business leaders and politicians as well as urban planners and members of think tanks breathlessly talk about how Smart Cities would transform the way we […]
Carlos Ghosn is a 64-year-old French citizen who is the head of three major automobile companies viz. Mitsubishi, Nissan as well as Renault. To people who are familiar with the automobile industry, Carlos Ghosn is not a name that needs any introduction. He is the wonder executive who has rescued automotive firms from the brink […]
During the 19th century, the robber barons were dominating the American economy. A handful of people had more wealth and power than the entire nation. It is for this reason that they would collude with each other to keep everyone else at bay. These robber barons were depriving everybody else of fair opportunity as a […]
Abstract The world of work is changing as we speak and the winners and losers in the workplace of the present are those who can adapt and thrive in this paradigm without being lost in the maze of complexity and chaotic work arraignments. Unlike the baby boomers and those before them, the Millennial generation cannot […]
While improving business processes, it is essential that one document the process as well as any improvements made to it. Most consultants will document both the “As-Is Process” as well as the “To-Be Process”. While many think about it as customary and do it for the same reasons, there are other important reasons to document […]
Decision making is crucial for survival of business. Businesses have to make decision considering the limited amount of information. Decision making problems are divided into two types deterministic and probabilistic.
Deterministic model of problem solving depends on the relationship between uncontrollable factors and continuing process of optimizing system performance. A model is developed in under assumption related to existing business condition. If the variables under assumption do not truly reflect the current business conditions, the model developed also will not reflect the reality.
Mathematical optimization utilizes mathematical equation to determine the business decision. The business decision derive is in a numerical form.
A business model for decision making is constructed by analyst based on inputs of a decision maker. A business model is developed over a period of time using a progressive approach method.
Optimization model is developed in three steps, 1st step is describing the problem, 2nd step is elaborating the solution and 3rd step is controlling the problem.
The optimized problem of the 1st step can be classified into linear and non-linear depending upon on nature of variables. Optimization problem has three following aspects:
The solution of optimized problem satisfying all parameters and constraints is referred as feasible solution. The objective of an optimization process is to value of variables, which minimize or maximize objective giving out an optimal solution.
Linear programming is a mathematical procedure of determining linear allocation of business variables. For constructing linear program following factors are essential:
In formulating a linear program certain variables are integer in nature, such as function with integer variable is known as integer programming.
In a certain decision-making process, probability plays an important role. On the decision model based upon probability is decision trees.
Business environment is always unpredictable and can throw up unusual situation more than often. Thus, organizations find themselves in the middle of dynamic environment. Here model and methods like sensitivity analysis, stability analysis, what-if analysis, scenario modeling, etc. is utilized.
Therefore, model under used uncertainties are as follows:
Theory of constraints is a management concept which helps organization deal with situation, which hampers its growth and march towards higher level of performance. Theory of constraint encourages an organization to deal one constraint at a time and consist of following steps:
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