Research Reports from the Department of Operations
Document Type
Report
Publication Date
10-1-1972
Abstract
This paper describes a study to develop a general method for use in the plant capacity expansion problem. The method was applied to and tested on a recent siting decision of a major manufacturing corporation. The facility location models as found in the current literature were examined and rejected because of (1) the limited, highly discrete set of feasible locations in the test problem, (2) the dependence of the decision on future as well as present costs, and (3) the need to include intangible values in the decision criteria. A decision table and a multiple criterion function incorporating both tangible and intangible factors were used. A DELPHI panel provided relative estimates of importance for the above factors. Present worth estimates of cost over a ten year horizon were made. Each site was then rated, using the intangible criteria. The results compared favorably with the actual corporate decision which was based strictly on operating cost evaluations.
Keywords
Operations research, Delphi method, Industrial sites, Multiple criteria decision making, Manufacturing industries--Management--Case studies
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 276
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Dean, Burton V. and Reisman, Arnold, "An Approach to the Plant Capacity Expansion Problem by the Delphi Method and a Criterion Function: A Case Study" (1972). Research Reports from the Department of Operations. 51.
https://commons.case.edu/wsom-ops-reports/51