Measuring decision flexibility in production planning

We present a measure of decision flexibility for production planning problems. The flexibility of a decision is related to the size of the choice set associated with this decision. In production planning models this set is a convex polyhedron in an n-dimension space. Our measure of flexibility is the volume of this set with additional information about the shape. By using a new method recently proposed we give an analytical expression of the measure of flexibility. Sensitivity of flexibility to various parameters is also given analytically as a by-product. Experimental results on the capacited Wagner-Whitin problem are provided.