A Monte Carlo Demonstration of the Implications of Workload Variability in Capacity Planning
Timothy S. Vaughan
University of Wisconsin – Eau Claire, USA
Volume 18: 2024, pp. 00-00; ABSTRACT
This paper addresses the implications of workload variability in capacity planning,
and the relationships between nominal capacity, effective capacity, and workload. An Excelbased Monte Carlo model provides a graphical depiction of the implications of workload
varying relative to some given capacity. A guided exercise demonstrates that workload
variability necessitates some amount of “buffer” or “capacity cushion” relative to average
workload. In the face of variable terminology that may impair students understanding of the
issue, the demonstration also helps to clarify that the buffer of concern exists for reasons other
than possible sources of planned or unplanned process downtime.
Keywords: capacity planning, utilization, efficiency, Monte Carlo simulation
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