A mathematical planning model is developed to help make cost effective decisions on key physical and operational parameters, for a satellite intended to provide customer premises services. The major characteristics of the model are: (1) interactions and tradeoffs among technical variables are formally captured; (2) values for capacity and operational parameters are obtained through optimization; (3) effects of physical and regulatory constraints are included; and (4) the effects of market prices for transmission capacity on planning variables are explicitly captured. The model is solved optimally using geometric programming methods. Sensitivity analysis yields coefficients, analogous to shadow prices, that quantitatively indicate the change in objective function value resulting from variations in input parameter values. This helps in determining the robustness of planning decisions and in coping with some of the uncertainty that exists at the planning stage. The model can therefore be useful in making economically viable planning decisions for communications satellites.>
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Dutta et al. (1992) studied this question.
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