Develop a spread sheet model to stimulate

Assignment Help Operation Management

Reference no: EM131888204

one of PLE 's manufacturing plants supplies various engine components to manufacturere of motocycles on just in time basis.

Planned production capacity for one component is 100 units per shift, and plant operates one shift per day.because fluctuations in customers assembly operations, however demand fluctuates and is historically between 80 and 130 units per day. to remain sufficient invintory to meet its just in time commitments , PLE management is considering a policy to run a second shift the next day if inventory falls 50 or below at the end of the day .( after the day demand is known ).

For the annual budget planning process , managers need to know how many additional shifts will be needed . the fundamental equation that governs this process each day is

ending inventory = beginning inventory+production- demand

Develop a spread sheet model to stimulate 260 working days(1 year), and count the number of additional shifts that are required. Assume that the initial inventory is 100 units.

Use PSI functions for all uncertain cells in building your model.Using the number of additional shifts required as the output cell for a monte carlo simulation,find the distribution of the number of shifts that the company can expect to need over the next year.

Explain and summarize your findings in a report to the plant manager and make a recommendation as to how many shifts to plan in next year's budget.

Reference no: EM131888204

Questions Cloud

What you had to do in order to learn how to make the object : How you got your idea for the project; describe how it happened. Saturation: this stage describes what you had to do in order to learn how to make the object.

Identify three problems that people might encounter : Identify three problems that people might encounter in their everyday lives. These can be even the most basic of life's inconveniences.

How much inventory is being? held on? average : One product line at Spearman Fishing Industries has 18 turns per year and an annual sales volume? (at cost) of $1,447,200.

What does the case of kiowa christianity reveal about human : Culture change is an often overlooked aspect in discussion of culture. What does the case of Kiowa Christianity reveal about human cultural processes over time?

Develop a spread sheet model to stimulate : Develop a spread sheet model to stimulate 260 working days(1 year), and count the number of additional shifts that are required.

Explain value and ethical concern of psychological profiling : Write a 6 to 8 page persuasive paper (excluding cover and reference pages) that debates the value and ethical concerns of Psychological Profiling.

What can you see yourself doing or not doiing : Where are you now in your thinking about your professional future? What can you see yourself doing or not doing?

Provide an explanation of the intended messages convey : Explain how these organizations make use of digital media to represent their brand to specific segments of the market.

Analyze why you have decided to focus on particular topic : Analyze why you have decided to focus on this particular topic and area of psychology for your paper, and explain the importance of the topic.

User Account

All Pages