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

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 ≦ 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.