Capacity planning in a transitional setting with simulation-based modeling: A case study

Significant progress has been made in the development of modeling and analysis frameworks for the purpose of supporting senior executives in their task of strategy formulation and evaluation. Using the case study British Synthetic Fibres Ltd, the important strategic task of capacity planning is addressed in a transitional setting. The paper illustrates the use of influence diagrams, the development of a spreadsheet model in a language facilitating easy communication with senior management, and the strength of risk analysis as effective tools for managing the capacity-planning process. Special emphasis is placed on the benefits and insights to be gained from this approach in evaluating strategic options in the context of the case study.