Question: Assignment # 3 Simulation ( 1 0 marks ) Topic: Balancing Process Capacity Objective: A car wash company wants to maximize its capacity utilization and
Assignment # Simulation marks Topic: Balancing Process Capacity Objective: A car wash company wants to maximize its capacity utilization and total profits for the eighthour workday : am to : 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 workinprocess; Littles law; Variability in demand and process Specifications: The customer arrival rate varies according to the time of day, with a peak in demand from : pm to : pm Serving as the operations manager of the car wash company, you are responsible for allocating the companys entire budget of $ million to the three stages of the process ie the vacuum, the machine wash, andor the hand dry stations to maximize efficiency and thereby overall profitability. Questions Please work on two scenarioschallenges ie 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: $ million allocation to the three stages. Tip: the optimal budget allocation for Challenge ie no variation is as follows: Vacuum: $; Wash: $; Hand Dry: $; Profit: $ Challenge :
Process information before investment:
Vacuum and Trash Removal: Min Mode Max Upgrade: $M buys cars hr
Machine Wash: Min Mode Max Upgrade: $M buys carshr
Hand Dry and Windows: Min Mode Max Upgrade: $M buys cars hr how can I calculate the best way to distribute the $M investment to maximize profits with the variability in Challenge
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