Drawing on the simulations you performed

Assignment Help Operation Management

Reference no: EM133288761

Assignment - Simulation

Topic: Balancing Process Capacity

Objective: A car wash company wants to maximize its capacity utilization and total profits for the eight-hour workday (9:00 am to 5:00 pm). The operations manager of this company should work on two scenarios (challenges): (a) the no variation and (b) the variation. In the former scenario, there is no variability in demand and process (supply), while in the latter scenario, variability is present.

Key concepts: Capacity utilization; Cycle time; Throughput: flow rate (or throughput rate) and flow time (or throughput time); Inventory (or work-in-process); Little's law; Variability in demand and process

Specifications: The customer arrival rate varies according to the time of day, with a peak in demand from 12:00 pm to 1:00 pm. Serving as the operations manager of the car wash company, you are responsible for allocating the company's entire budget of $3 million to the three stages of the process (i.e., the vacuum, the machine wash, and/or the hand dry stations) to maximize efficiency and thereby overall profitability.

Question 1. Please work on two scenarios/challenges (i.e., no variation and variation) and run the simulations as many times as you want to identify the: (a) maximum profit, (b) optimal number of cars should be washed to maximize profits, (c) optimal budget (available budget: $3 million) allocation to the three stages.

Tip: the optimal budget allocation for Challenge 1 (i.e., no variation) is as follows:
Vacuum: $1,000,000; Wash: $500,000; Hand Dry: $1,500,000; Profit: $825

Question 2. Please provide key findings identified while running the simulations, which would facilitate profit maximization, and a screenshot with capacity utilization graphs for the three stages referring to your optimal solutionfor each Challenge separately.

Question 3. Drawing on the simulations you performed for Challenge 2 (i.e., the scenario with variation),make recommendation(s) to improve the operation and mention the possible disadvantage(s) of your recommendation(s). Justify your answer.

Attachment:- Managing Operations.rar

Reference no: EM133288761

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