Abstract
AbstractThe economic theory of optimal scale may be applied to service organizations with stochastic volumes, such as the data processing installation of a firm, as well as to production facilities with deterministic volumes. The objective of such analysis is to ascertain which systems are most flexible in processing wide ranges of volumes efficiently and to postulate a general shape for the cost function of similar facilities, if possible. The more flexible the data processing system, the better it is able to cope with fluctuations in transaction volume over time and the less the need for extensive pre‐installation systems study. A simulation model of the job environment of three common EDP systems provides information on the shape of their cost functions in the neighborhood of optimality.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of the American Society for Information Science
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
