A scenario approach to a multiperiod and stochastic capacity planning problem

This paper presents a scenario-based approach for solving a multiproduct and stochastic capacity-planning problem. This approach represents a tool that allows decision makers to optimize, over a given planning horizon and under uncertain demand, the capacity planning strategies for problems where different products can be produced/stored at different sites having flexible capacities. It is based on a profit/risk analysis of a specific set of feasible strategies derived under specific demand scenarios.