ABSTRACT
This chapter provides the reader with an overview of the methodologies that are available for supporting technology and capacity decisions. It also provides the reader with a flavor of the research in the area and describes its role in making technology choices and expansion decisions. The chapter begins with a brief description of methods commonly employed in practice, and points out major weaknesses in capturing key tradeoffs. It describes the major factors that play a key role in technology and capacity choices. The chapter is devoted to models and methodologies that have been developed to support these strategic and tactical decisions. It also describes the key factors of the capacity planning problem. The chapter discusses approaches for the evaluation of alternative technologies, and for the adoption of investment and capacity plans. It focuses on modeling issues and applications rather than on theoretical results.
