Managerial Insights from Service Industry Models: A New Scenario Decomposition Method

The service industry literature has recently assisted to the development of several new decision-support models. The new models have been often corroborated via scenario analysis. We introduce a new approach to obtain managerial insights in scenario analysis. The method is based on the decomposition of model results across sub-scenarios generated according to the high dimensional model representation theory. The new method allows analysts to quantify the effects of factors, their synergies and to identify the key drivers of scenario results. The method is applied to the scenario analysis of the workforce allocation model by Corominas et al (2004).