Optimal Capacity of a Storage System

Abstract

We frequently come across the problem of determining the optimal capacity of a storage system with respect to some criteria. For example in a production system which requires adequate storage (or bunker) capacity any method of decision-making for determining the optimal capacity takes into view two conflicting factors, viz. (i) to satisfy the demand for storage when there is an inflow of materials, (ii) to avoid over-investment in building a too large capactiy which may be partially used for sometime. The factor (ii) stated above is particularly tricky, because what we consider too large a capacity today may be inadequate in the next ten years if there has been a considerable growth in production activity. An example is the baffling problem of creating adequate capacity in most of the international airports of the world both from the point of view of meeting the runway capacity for growing airtraffic and at the same time accommodating growing passenger traffic in the airport building. When most of the airports were designed, it vías not visualized that huge jumbo jets carrying 4–00 passengers would be coming. The problem of determining the optimal reservoir capacity of a dam to be built is also similar: the estimates of future demand for irrigation water and hydroelectricity generation may be offset by the development of the area after a few years.