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Determination of Optimal Capacities of Service for Facilities with a Linear Measure of Inefficiency

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  • Friedrich Hanssmann

    (Case Institute of Technology, Cleveland, Ohio)

Abstract

A service facility F ı always employs an “effort” x ı to perform a service x ı is called its capacity. If a service requires the minimum effort x (le) x ı for performance, the operation is, in a sense, inefficient. The difference x ı - x is used as a measure of wasted effort. If a specified number, m , of facilities with different capacities is to be installed, it is possible, for a specified distribution of x , to determine the optimum capacities x ı , ..., x m such that the total wasted effort is minimal. A simple iterative procedure for so doing is developed and illustrated.

Suggested Citation

  • Friedrich Hanssmann, 1957. "Determination of Optimal Capacities of Service for Facilities with a Linear Measure of Inefficiency," Operations Research, INFORMS, vol. 5(5), pages 713-717, October.
    • Handle: RePEc:inm:oropre:v:5:y:1957:i:5:p:713-717
    DOI: 10.1287/opre.5.5.713
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    Cited by:

    1. Pentico, David W., 2008. "The assortment problem: A survey," European Journal of Operational Research, Elsevier, vol. 190(2), pages 295-309, October.

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