Evaluation of capacity differences

MANAGEMENT IS faced frequently with the problem of selecting the most desirable plan from several possible alternatives which affect system capacity. Comparison of the various proposals may reveal differences in several respects in addition to the amount of system capacity, such as the time and amount of capital investment required, the relative service reliability of the different plans, and their simplicity or flexibility. This article deals with two particularly troublesome questions that arise when alternative plans differ in plant capacity supplied or required.