Network demand forecasting model

Figure 1. Sample network demand forecasting model...

Robust investment model for long-range capacity expansion of chemical processing networks under uncertain demand forecast scenarios. Computers el Chemical Engineering, 22, 1037. 

The objective function of a supply network design model can either minimize costs or maximize profits. In practice the production function is often required to assume that all forecasted demands have to be met. In this constellation cost minimization and profit maximization lead to identical results and consequently cost minimization models are used. From an economic perspective this simplification can be justified in cases where a high share of fixed costs allows the assumption that any product sale con-... 

These demand forecasts developed through the application of network models are only a first step in establishing an overall planning model such as a venture simulator. There have been numerous presentations (I, 2) of these more complex simulation systems in the past, and for a new product in a new market, a venture simulation as outlined in Figure 2 provides a useful means of evaluating the outlook for such a project. This approach involves the development of a series of simulation models which when complete contain at least four sectors ... 

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