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Factorial Design Applications in Sensitivity Analysis

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Abstract

This paper present 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 appioach with the conventional sensitivity analysis methodology.

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Authors and Affiliations

  1. Department of Industrial and Management Engineering, Institute of Technology Kanpur, Kanpur, UP, 208016, India

    Tapan P. Bagchi

  2. Department of Mechanical and Industrial Engineering, University of Toronto, Toronto, M5S 1A4, Canada

    Shu Lin

Authors
  1. Tapan P. Bagchi
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  2. Shu Lin
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Bagchi, T.P., Lin, S. Factorial Design Applications in Sensitivity Analysis. OPSEARCH 34, 242–258 (1997). https://doi.org/10.1007/BF03398529

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