Reference no: EM132294846

E-commerce and supply chains. Consider BlueSky Books, a marketing and publishing company of a popular book (only one copy per customer order). The marketing activity centers on the website BlueSky.com operating 24 hours a day, which receives orders from customers and passes them on to the publisher. The publisher prints and maintains a small inventory of the book, and uses it to fulfill customer orders. Book requests are generated at a client host, and arrive with iid exponential interarrival times of rate 10,000 units per day. The CPU time per book order at the client node is exactly 1 second, and the size of each request message is precisely 2048 bytes. Book requests are sent to the server host through a communications (transmission) network with BWC of 2250 bytes/second and MTE of only 60%. The server host has a single server process that receives all book requests and processes them. The elapsed time per request is 4 seconds and includes charging the customer’s credit card, transferring the proceeds to a bank account, and updating a local database with order information. On completion of processing, the server sends two messages of size 1024 bytes each over the transmission network—an acknowledgment message to the client and an order message to the publisher. The BlueSky publishing division has one press on its shop floor, and is guaranteed to have sufficient supplies of ink and paper on hand. The press can operate 24 hours a day and never experiences failures. The time it takes to print batch of 3000 books is iid Tria(2.5, 4, 6) hours. As soon as the publishing division receives an order from the website, it ships the order to the customer (and records an inventory reduction of one unit). The publishing division maintains a maximal inventory of 15,000 books, but when it drops down to 3000 books, the press is activated to replenish the inventory to 15,000 books, at which point the press is idled again. The shipping time for a book delivery is iid Unif(1, 3) days. Unsatisfied book orders are backordered. If there are outstanding backorders, they are satisfied first as soon as a new production batch is completed. The remaining books, if any, are added to the on-hand inventory.

Develop an Arena model for the BlueSky operation and simulate it for 15 days, starting with an initial inventory of 1000 books on hand.