Determination of satisfactory scale for data processing facilities

Susan L. Solomon

Journal of the American Society for Information Science, 1974, vol. 25, issue 3, 151-155

Abstract: The 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.

Date: 1974
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/asi.4630250305

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jamest:v:25:y:1974:i:3:p:151-155

Ordering information: This journal article can be ordered from
https://doi.org/10.1002/(ISSN)1097-4571

Access Statistics for this article

More articles in Journal of the American Society for Information Science from Association for Information Science & Technology
Bibliographic data for series maintained by Wiley Content Delivery ().