Reference no: EM132947075

Question - During the Easter season, the bakery "Nice Treats" operates as a "click away" business. It receives orders for four products: "tsoureki", "bread", "cookies" and "flaounas". An order has a 30% probability of containing "tsoureki", 20% probability containing "bread", 15% probability for "cookies" and 35% probability for flaounas. Each order contains one of these products in a specified quantity. For each of the products, the oven has a special workstation, where the ingredients are mixed. The ingredients are available in unlimited quantities. When the ingredients for a product are mixed, then each order is placed on a tray. The trays are mounted on a trolley and brought in the oven on a First-In-First-Out (FIFO) manner. If a disc remains on the shelf for 6 hours, then the contents are considered expired and are discarded. There are four trainees and one baker. Each of the trainees is assigned to a mixing station. The baker is responsible for baking. After baking, each product waits to be packaged. Whoever is available (trainee / baker) takes over the packaging. The packaged items come out of the oven.

Activities are described by the following distributions.

Order: Exponential, average = 0.8

Preparation for "tsoureki": Exponential, average = 1

Preparation for bread: Exponential, average = 2

Preparation for cookies: Exponential, average = 1

Preparation for "flaounas": Exponential, average = 2

Baking Process: Normal with an average value of 1.5 and a standard deviation of 1

Packing process: Fixed with constant value = 2

GOAL: Keep the percentage of orders that expire to less than 5% of the total orders entering the model.

1. Draw the model for the "Nice Treats" oven, run it and comment on the "as is" state.

2. Develop a strategy for achieving the goal and explain your assumptions, proposals as well as the financial implications of your proposals.