Article ID: | iaor199999 |
Country: | India |
Volume: | 34 |
Issue: | 4 |
Start Page Number: | 242 |
End Page Number: | 258 |
Publication Date: | Dec 1997 |
Journal: | OPSEARCH |
Authors: | Lin Shu, Bagchi Tapan P. |
Keywords: | decision theory: multiple criteria |
This paper presents a direct yet effective method to determine the sensitivity of managerial decisions to a multitude of inherent assumptions and factors. The approach used the factorial design framework to uncover the critical individual uncertainties and assumptions and their interactions, with the objective of improving the overall quality of the decision and assisting in the development of contingency plans. A real life case study is used to compare this approach with the conventional sensitivity analysis methodology.