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A comparative model of facility network design methodologies
Author(s) -
Powell Robinson E.,
Swink Morgan L.
Publication year - 1995
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/0272-6963(95)00027-p
Subject(s) - intuition , computer science , network planning and design , heuristic , operations research , variety (cybernetics) , key (lock) , management science , risk analysis (engineering) , artificial intelligence , engineering , computer network , philosophy , computer security , epistemology , medicine
Operations managers use a variety of decision making tools when designing facility networks. Intuition, scenario evaluation, heuristic and optimization procedures are commonly applied. This paper discusses the relative advantages and disadvantages of the alternative methodologies for network design and proposes a cost trade‐off model for choosing the best approach. Accessibility, precision and supplemental analysis are key factors to consider during the selection process. We also present the results of a laboratory experiment which measured the performance of analysts using intuition, scenario evaluation and enhanced scenario evaluation procedures to solve realistically‐sized network design problems. The test problems included several sizes of single‐echelon, multi‐activity and two‐echelon facility network design problems. The experimental results, when embedded into the cost trade‐off model, provide quantitative guidelines for selecting the appropriate decision support procedures. Implications for practitioners, researchers and decision support system developers are provided.