Question: Assignment # 3 Simulation ( 1 0 marks ) Topic: Balancing Process Capacity Objective: A car wash company wants to maximize its capacity utilization and

Assignment #3 Simulation (10 marks) 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); 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 12:00 pm to 1:00 pm. Serving as the operations manager of the car wash company, you are responsible for allocating the companys 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. Questions 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. Challenge 2:
Process information before investment:
Vacuum and Trash Removal: Min 22.5, Mode 36.0, Max 40.5, Upgrade: $1M buys +1.5 cars/ hr
Machine Wash: Min 18.8, Mode 30.0, Max 33.8, Upgrade: $1M buys +15 cars/hr
Hand Dry and Windows: Min 21.0, Mode 24.0, Max 33.0, Upgrade: $1M buys +9 cars/ hr. how can I calculate the best way to distribute the $3M investment to maximize profits with the variability in Challenge 2?

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