## The Capacity Decision System |

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### Contents

CHAPTER PAGE | 1 |

Uncertainty | 24 |

Capital Budgeting Decisions | 48 |

Copyright | |

4 other sections not shown

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### Common terms and phrases

AC(n alternative amount analysis asset assume assumptions average cost basic contract budget allocations cash flows choose compute consider consideration decentralization decision problem decision systems demand depreciation division budget effective equal equipment equivalent annual cost evaluation example expected dollar return expected profit expected utility firm firm's forecasts funds future gate value Given R Given headquarters group identical machines income increase initial investment interest rate investment decisions investment recovery investment results involved level of search maintenance costs manager's marginal cost ment method newer machine number of machines obtain operating and maintenance operating costs Operations Management Homewood optimal payments period planning horizon predicted preferences present machine present worth principle of choice probability distribution probability of success probability theory production random variables rate of return replacement policy salvage value search effort Series in Operations service lives subjective probabilities suggested Suppose systems designer TC(N uncertainty utility function zero